Leadership and Management: Digital Tech and Service Industry, TUI

This report delves into the crucial aspects of leadership and management within the service industry, using TUI, a prominent German travel and tourism company, as a focal point. The analysis begins with an introduction to the core concepts of leadership and management, emphasizing their significance in organizational success. Task 1 examines classical management theories, including scientific management, Weber's bureaucratic approach, and administrative approaches, and applies them to the service industry context, particularly within TUI. The role of a leader and various leadership styles, such as transactional, participative, transformational, and situational leadership, are explained, alongside the skills and qualities required for effective leadership. Task 2 investigates internal and external factors influencing management style and structure. Task 3 assesses current and future management and leadership skills, providing evidence from service sector examples. Task 4 compares change management systems and leadership in different service industry organizations. The report concludes by summarizing the key findings and insights derived from the analysis.

Leadership and
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1- Assess different classical management theories and apply these in a service industry
context.........................................................................................................................................3
P2-Explain the role of the leader and different leadership styles in a service sector industry
context.........................................................................................................................................5
P3-Review the management and leadership styles in a specific service sector organisation ....6
Management style.......................................................................................................................7
TASK 2............................................................................................................................................8
P4-Investigate the internal and external factor that influence management style and structure
in a selected service industry organization..................................................................................8
TASK 3............................................................................................................................................9
P5 Assess current management and leadership ‘hard and soft’ skills providing evidence from
a specific service sector examples ..............................................................................................9
P6 Discuss future management and leadership skills required by the service sector and how
these can be achieved ...............................................................................................................11
TASK 4..........................................................................................................................................12
P7 Compare and contrast different service industry organisations change management systems
and leadership in implementing change ...................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................13
Books & Journals......................................................................................................................13

INTRODUCTION
Leadership and management refers to one of the major function which is implemented in
each and every industry. Managers use this to manage and organize all the business activities as
well as to encourage staff members so that they can attain their organisational goals and
objectives effectively. Leadership means position of an individual in order to direct employees,
so they perform their task in a proper way. On the other hand, management is one of the most
significant part of an organization with the help of which they can achieve their pre defined task.
It is essential for every organisation to organize and manage business functions to gain
competitive advantage at the market place (Adams and et. al., 2017). This report is based on
theme which is How digital technology influences the evolving role of leaders and managers in
the service industry. In the present report, TUI is chosen as the base company. Its a German
travel & tourism company which serves tour and travel services to customers. In the current
report, major emphasis is given to various topics which includes classical theory, leadership
styles and management style. Along with this, the report will going to cover different role of
leader as well as different leadership style which will aid in order to increase their profitability
along with productivity of the organization.
TASK 1
P1- Classical management theories applied to service industry
Today's scenario is that the Travel and tourism company is fastest growing sector
in whole world. For growth and profit maximization they are using various strategies in their
organization as TUI group is using different management theories in their organization for
proper management. The digital technology also play an important role in an organization as this
influence the roles and responsibilities of managers and leaders for effective working which
increases the productivity and performance in business organization. The management of the
TUI group should also makes effective plans about conducting the travel and tourism business
and also focuses on providing training to employees and manager as there are the one who is
offering the product and services to the tourist. The classical organisation theory includes
scientific management approach, weber's bureaucratic approach and administrative approach
(Bird and Mendenhall, 2016).
Scientific Management Approach:

Scientific Management Approach is introduced by F.W Taylor, which is focuses on the
productivity and improving the efficiency of each individual in the organization. As this is used
by the top level management of TUI group for effective result from the employees, as this a best
approach for improving productivity of the employee effectively and efficiently. This approach
has some principles and rules introduce by Taylor, the father of scientific management and also
properly used by the managers of TUI. The principles say that separates the planning from the
action as they are different from each other and also does the proper selection and training of
employee is done. The top management of the TUI also focuses on improving theirworking
environment so that equality can get spread among employees that belongs to different cultures
and also provides the incentives to employees to boost their productivity and for motivating them
( Efferin, S. and Hartono, M. S., 2015). It was only follows to low-level routine as well as
repetitive work which can be handled at supervisory level. TUI follows principle of scientific
management approach which is choosing the right person to perform the activity and give
accurate training to the employee to maximise their work performance and efficiency which will
derive an organisation to achieve their goal.
Weber's Bureaucratic Approach:
Bureaucratic Approach is given by Max Weber, which is also known as father of modern
sociology. He uses the word bureaucracy for describing organisation form in which it means
superior. This approach considered various approaches, and used by the management of TUI
group like the structure of the organization as they arranged the position in a hierarchy so that
each one can identify the level of management (low level, functional level, administrative level
of management). Next approach is rationality in the organisation as the management of TUI do
not partial in any function of the organization like recruitment, selection, performance appraisal
etc. It also focuses on specialization approach which considered that each task differentiate on
the functional bases and its specialization. The company should also operate according to the
system procedure(Bird and Mendenhall, 2016). TUI follows this approach and formed a
hierarchy with actual chain of command where upper level management control the lower level
management which ensure that enterprise is operated as well as handled by qualified personnel
and permit to perform regular job by following job specialisation.
Administrative Approach:

Administrative approach is introduced by Henry Fayol in 1949, known as father of
management studies and thoughts, which introduces the management to the need and the
guidelines to manager the complicity in the organization like factory, industries etc. the TUI
group is focusing on this theory , as they are dealing in tourist and tourism sector where they are
dealing with both blue collar labour and with collar labour. The managers of TUI group are
considering the various function of management such as planning, organization, staffing,
directing, controlling, coordinating and it also introduce the different various principles for
management of factory which is very beneficial and profitable foe the employees and workers
effectively. TUI follows the principles or values which are discipline to keep harmony in the
organisation, unity of command as an individual only acquire order from one superior which
decrease confusion at work as well as division of labour which output in more efficiency at
work.
P2-Explain the role of the leader and different leadership styles in a service sector industry
context.
The basic role of leader is defined as leading, monitoring, mentoring, motivating each
individuals in a team. The main aim of any leader is to have out of box thinking when setting
objective for growing any scale of business (Frich, and et. al., 2015 ). The key effective traits
which any leader inculcate is risk taking abilities, generation of innovative ideas that might be
utilised in any activities, honesty and transparency in flow of information in any organisations. If
it is talked about Tourism Union Industries allows leaders to adapt characteristics like
commitment, passion, good communicator, decision making capabilities and many more, for
guiding pool of small teams for performing business activities in an organisation for achieving
competitive advantage in hospitality sectors (Haile, and et. al., 2016). There are various
leadership styles which are followed by leaders which are briefly mentioned below:
Skills and qualities of a leader
Leaders have formative responsibilities some of that include guiding and motivating
subordinates towards effective accomplishment of organisational goals and objectives. There are
some certain skills that include, communication, motivating, trustworthiness, responsibilities,
creativity and positivity. By this, the leaders can effectively able to perform their operations.
Transactional Leadership: This style consist of a systematic process which include
activity, process and awards appreciations for employees as well as discouraging the ones who

have not performed good when working in any organisation. If talking about Tourism Union
Industries, leaders follow this style in positive way by motivating each staff members by
providing monetary benefits, which will result in retaining quality employees in organisations .
Henceforth effectively communicate with consumer who are going to consume hotel product and
rendered services. Transactional leader within TUI mainly emphasis on results, conforms to the
present structure of an enterprise and measures growth according to their organization's system
of penalties and rewards. This kind of leader is liable for maintaining everyday by managing
each employees performance as well as facilitating group performance.
Participative Leadership: This leadership style consist of combining of employee-
employer, employer-employer and employee-employee for conducting decision making process
in operating and managing business activities in work culture. In context with Tourism Union
Industries, most of the leaders have followed this style, as it help in bringing numerous
employees with different and innovative mindset together in a team for efficiently performing
every task while attaining competitive advantage in hospitality sectors. Participative leader
within TUI empowers workers to use their creativity to create more productive or effective work
processes and make the organisation more efficient. As it will help TUI to gain competitive
advantages and achieve better outcomes within given time period.
Transformative Leadership: It is an effective approach used by leaders for inspiring
and motivating each individuals for achieving long term as well as short term goals set by any
company. When talking about Tourism Union Industries, leaders have adopted this style in order
to increase market share which in turn groomed as effective production of hotels goods as well
as quality in service offered to consumers and enhance customer relationship to attract potential
tourist for organisations. Transformational leadership is a type of theory where a leader works
with groups to analysis required change, developing a vision to guide the modification via
inspiration, and executing the modification in tandem with committed group members. As this
leader will help TUI to achieve better results within given time duration.
Situational Leadership: This leadership style majorly emphasize on internal and
external factors which directly or indirectly fluctuates the flow of business activities in work
culture. If it is talked about Tourism Union Industries, leader adopt this style for observing the
behaviour of each staff members when they perform activities at both individual and team level
while balancing the operational task in work culture (Hallinger, P. and Chen, J., 2015). These

steps taken by leaders, help in assessing performance of each employee at monthly basis for
improving the efficiency in work quality. The situational leader does not modify their approach
simply to take benefit of the situation. They merely adapt in an effective way that is most proper
considering components such as the maturity ground of people, the organizational culture and
structure, and the goals to be achieved. This leader will also play vital role by overcoming any
issues within an enterprise.
As per the above mentioned discussion it has been evaluated that, within TUI leaders take
advantage of situational form of leadership style while operating business activities in working
environment. This helps the leaders for making effective decisions that further allow them to
perform their leadership responsibilities in best effective manner while accomplishing
organisational objectives in formative manner. Henceforth resulted as increasing market shares,
improve brand image and generating revenues of company in hospitality sectors.
P3- Management and leadership styles in a specific service sector organisation
Each and every team leader adopt different leadership styles of managing there
employees, the various ways of handling the subordinates in the organisation is known as
leadership style. It helps in providing guidelines, future plans. The leadership style was
performed by Kurt Lewin in 1939. Management style is a process by which mangers try to
accomplish a goal which helps organization in achieving future target. Good management style
provide aid to motivate people and it helps the organization to utilize there resources efficiently.
In other words, dealing with employees in the organisation is known as management style (Jeon,
Y. H. and et. al., 2015). In the context of TUI both management and leadership style have there
different role. For achieving success TUI should focus on both the style. Leaders are the
individuals who guide and motivate subordinates towards effective accomplishment of goals and
objectives while ensuring organisational profit. In addition with this, manager are those
individual who manage particular department and section within an organisation. Along with this
they take care of needs and demands in every department and provide the same. Mentioned
below there are some certain management and leadership styles that are required to be consider
by TUI:
Leadership Styles:
Laissez- faire Leadership- This is a type of leadership, which allows employees to
make the decision. TUI should follow Laissez- faire in organization, which will help in

motivating the employees. Leader expect that team member should solve problems by
themselves, it will help the employees to take decision effectively. TUI leaders should provide
the necessary tools and resources to there subordinates so they can work efficiently. There
should be complete freedom to take any decision in service industry because employee have to
deliver better quality services to there respective customers.
Transformational Leadership- Like other leadership styles, transformational leadership
describe about the change in any organization, individual group (Mathew. and Gupta, 2015).
Service sector is changing rapidly due to the global turbulence,TUI should adopt leadership style
in order to compete in market and for bringing major changes, company should follow these
four factors:
Inspirational motivation- Main purpose of inspirational motivation is to promote set of
values to the individual. Company should interact with every employee and they should provide
sense of meaning and challenge,TUI should try to maintain spirit of teamwork and commitment
of employees.
Intellectual stimulation- TUI should encourage there employees to be creative and
innovative, because to expand the market, the organization should keep there door open for new
ideas from there employees. Leaders focus on problems rather than focusing on negative
elements.
Idealized influence- Good leader act as a role model to there followers, it is the
responsibility of leader that he or she should not be biased among employees (Nguyen, T. T.,
Mia, L., and et. al., 2017). Such kind of leaders always win hearts of there employees and can
gain respect among subordinates in organisation.
Individualized consideration- TUI leader should reward there employees for there
creative and innovative work, this will keep the followers motivated. They should always
empowered to make decision and provided some support to implement there decision in
organization.
Leaders and managers within TUI take advantage of Laissez- faire Leadership style, with
the help of this they can effectively able to allow their employees to take decision. In addition
with this, By this leaders can effectively allow their workers take decisions by themselves that
further help them to be more creative while accomplishing their organisational work. For
example: Laissez Faire management style is more effective and essential because it allows an

individual with the most experience in order to take the lead on a project. Along with this, it is a
chance for every person to offer their own skills and knowledge on specific thing without
compromising the leadership role for the group.
Management style
There are different types of management styles that can be consider by TUI managers as
to effectively perform their roles and responsibilities in a well defined way. Some of the certain
management styles are defined below:
Directive Management style- It is important for tourism industry to use directive
management style, because this provide full authority to mangers to control all the activities
going in organization. Manager focus more on how to get work done effectively in given period
of time (Peachey, and et. al., 2015).
Authoritative management style- TUI should focus on long term vision and provide
direction to there employees, because in authoritative the key factor is to provide guidelines to
there subordinates about the vision of the company.
TASK 2
P4-Internal and external factor which influence management style and structure.
Managers have to execute various roles in an organization and how they tackle the
situation will totally depend on management style. It consists of various factors like planning,
executing and organizing work to accomplish the desire objective. TUI should implement
management style in order to make effective decision. Knowing how internal and external factor
impact the organization can help the business thrive.
Internal factor- They are the kind of factors which are related internally to organization.
Internal factor may effect the efficiency of the employee, so it is important for TUI group to
focus over internal factor to achieve there respective goals. The company have decided to
implement new technologies in order to beat competition.
Employees and Mangers- In any organization employee's are the major part of internal
environment,TUI group should hire skilled employees who are great at there jobs (). Managers
should good in handling the employees grievances within the organization, internal politics and

mismanagement can shatter the image of company, so it should be avoided in order to smooth
functioning of organization. TUI should focus more employees and there mangers to achieve
Money and Resources- TUI group should do proper utilization of resources to expand
there business (Shek, D. T. and Lin, L., 2015). For tourism company advertisement is a key
factor to promote there product and service, but they are to expensive so organisation should use
cash and other resources efficiently to endure the economic downswing.
In addition with this, as to effectively strengthen internal structure within organisation
TUI leaders and managers is required to ensure that they take advantage of employee
engagement. With help of theses resources, the leaders of organization effectively focusing on
eveauating the ability, skills and qualities of their employee and further increase them towards
more effectiveness. Transformative style is essential for TUI and its manager to follow and guide
their workers about how to achieve long term goals and objectives. Along with this, with the help
of this style manager or leader of company can easily except all changes. Along with this,
leaders and further required to take care that there is formative commitment prevailing within
their structure as to increase employees loyalty. In addition with this, it is essential of leaders to
take care that there is positive culture within organisation that further help in building
relationship that stimulate more productive outcomes. By this, leaders can effectively lead their
employees. In addition with this, it is ascertained that culture is one of the main factor that
influence leader type. Within this leaders within TUI is require to take decision as per
accordance with situation.
External factors- These are the factors which are not controllable by organization and
outside influence can impact the whole company. The change in the factor will directly impact
on business and investment of company. In the context of service industry there are various
external factors which will effect the organization are stated below.
Digital disruption- The service industry is moving towards new digital products and
innovative technologies, the way people engage and communicate with each other is changing
rapidly. As a result, it has reshaped the experience of customer in tourism industry. TUI should
provide digital services for check inns and check out for there customer in order to provide them
better experience. Thus in this, leaders with TUI is required to ensure that they keep of updating
their knowledge of new digital innovation and further communicate the same with employees
and to increase organisation efficiency.

As per the above discussion it has been ascertained that digital technology effectively
influence leadership style as with the advancements in technology leaders are required to take
decision with the help of which they can effectively able to guide their employees towards better
organisational outcomes. In context with leaders and managers within service industries it is
essential of leaders and managers to update their skills and knowledge as per according to new
and advanced digital age in order to increase organisation efficiency. Transformative is more
effective leadership style which will directly influence on business and its growth.
Transformational leadership supports transform members of a team into each person who
transcend beyond self-actualization as well as their own self-interests for the part of the group or
TUI. This style will support an enterprise to gain long term goals and objectives within given
time duration.
TASK 3
P5 Current management and leadership ‘hard and soft’ skills.
In context to service sector the digitalisation play important role in the market. Manager
of the TUI group that is management and leadership skill is working hard for the development
and handling of critical situation in the business. Various qualities are needs for the manager to
overcome the organisation’s difficulties in the context to service sector some of the
characteristics are been discussed below:-
Leadership and communication abilities: Leading the team not the easy task and not
this it is biggest difficult situation. Leaders are not made they made the leadership qualities are in
build in the individual. A good leader leads the team in a right path and it also helps the members
to achieve the objective of the organization. Communication is another important element which
is required in the organization. It is a two process and transfer information one place or one
person to another. In the company an effective communication is necessary which leads to grow
the productivity. In reference to TUI groups manager is required to lead its team members and
has to work in an effective manner so that each and every individual of the team can under its
own duties and responsibilities so that maximum output can expected from the team.
Knowledge and Time management: In the organization time and knowledge need to be
parallel then only work can manageable. In the management time is a essential factor that need to
be balanced and work output can be maximum. Where as TUI group’s management team have a

wide knowledge about the business and also have communicate to its employees about the
business objects and task that needs to be completed at a particular time. For enhancing the
growth of the company it is necessary for the organization to work with the employees according
to the time management.
Self- confidence: This is important fundamental quality which should be there in the
employees. In the organization many challenges are been faced by the management team in day
to day operations. Self confident shows the way of handling in the critical situation. An effective
manager of TUI group have faced many challenges regarding to the operations of the business
but due to having an effective abilities was able to handle the situation. Team manager has the
ability to inspire the worker to work in a given time period that can change their attitude towards
the work responsibility and also help them to face the difficulties.
Difference between hard skill and soft skill of a manager
Hard skill Soft skill
IT and Digital Skill: The management of the
TUI group should adopt the digitalisation
techniques which aid to enhance the
knowledge and skills of web designing also
can helps in functioning the business activities
Data and Project management: The TUI
managers should have the ability to collect the
basic infrom from its client
Teamwork: Teamwork is an effective factor in
the organisation so the manager of the TUI
should focus on the team member for effective
result. If the team leader has the ability to work
as a team than the work can be finished in
before time
Goal setting: The top level management of
TUI Group should set the goals for each and
every individual according to their capabilities.
Importance of soft skill:
BY considering the above statement, it can analyzed that soft skill are personal features
of present theory which reflect the effective decision making and their capabilities alonf with the
performance of business organization. Soft skills helps in effective communication as well as
helps in performing leadership skill effectively and efficiently, which are the important
contribution to the organization. Through soft skill they influence it in their organization which