Leadership and Management Strategies for Service Industries: TUI Group

This report examines leadership and management practices within TUI Group, a major player in the travel and tourism sector. It begins by assessing classical management theories and their application, including scientific management, bureaucratic methods, and administrative management, highlighting their relevance to TUI UK. The report then analyzes management and leadership styles, specifically focusing on the persuasive management style and democratic leadership style adopted by TUI, in relation to organizational structure and culture. It delves into the role of leaders and leadership styles in the service industry, emphasizing the importance of providing vision and inspiring employees. The report also reviews the management and leadership styles in a specific service sector context, comparing the persuasive management style with the democratic leadership style. Furthermore, it explores internal and external factors influencing management style and structure, such as finance, employee engagement, customer management, and technological advancements. The report further discusses management and leadership skills in the service sector and their evolution with technology. Finally, it compares service sector change management systems and leadership styles, examining how change management affects management and leadership skills and styles, and concludes with key findings and recommendations for effective leadership and management within TUI Group.

Leadership and
Management for
Service Industries

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Assess different classical management theories and application of these theories...........3
Analyse management and leadership styles in relation to organisational structure and culture. 4
P2 Role of leader and leadership style in service industry.....................................................4
Leadership styles:...................................................................................................................5
P3 Review the management and leadership style in a specific service sector ......................6
TASK 2............................................................................................................................................7
P4 Internal and external factors that influence management style and structure...................7
Characteristics of effective manager in face of increased technology...................................8
Analyses the internal and external factors that influence management styles and structures 8
Critically analyses how management styles have been influenced by internal and external
factors.....................................................................................................................................8
P5 Management and leadership ‘hard’ and ‘soft’ skills in service sector..............................9
P6 Management and leadership skill for future....................................................................10
A critical evaluation of how, to better use of the technology, management and leadership
skills have developed ...........................................................................................................11
TASK 4..........................................................................................................................................11
P7 Compare service sector change management systems and leadership style...................11
Examine of how change management affects management and leadership skills and styles 12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
.......................................................................................................................................................16

INTRODUCTION
The leadership and management both are very essential elements in the service industry
as they are responsible to motivate, lead, and build respect within the workforce. Leadership can
be understand by the process which helps a business to guide, direct and influence the work and
behaviour of others in order to meet the organisational goals. Other management is an art which
is necessary to run business effectively by gathering all the employees. This present file is based
of TUI Group which is German travel and tourism company and its headquarter situated in
Hannover, Germany. This report will cover about the use of classical management theories and
leadership styles. Along with this, it will understand that how all the internal and external factors
can influence the management style and structure. Analyse different skills of leadership which
are required in the service sector. At the end, the difference between the management system and
leadership in implementing the changes in different organisation will be interpret.
TASK 1
P1 Assess different classical management theories and application of these theories
Classical management theory focus on the physical and economical needs of the
employees rather than the social needs and job satisfaction. This theory defined about some
principles which will help an organisation to resolve the conflicts and control on the human
behaviour. By adopting this theory in their organisation TUI UK can motivate the workers, build
effective decision making process, centralised leadership and increase their profits. This theory
consist three theories within which are described below:
Scientific Management Theory: This theory is developed by the Fredrick W. Taylor
who is the father of scientific management. They have focussed on improving the efficiency of
each employee in the organisation(Yee, and et. al., 2013). In this theory they are trying to replace
all the old method with new methods, intense technologies and many others aspects. By adopting
this theory in their business TUI UK can build a healthy relationship between the workers and
machines so that the desired outcomes can be achieve. Moreover this theory tells that the
managers should corporate to their employees in each activities so they will be able to do their
operations effectively. Along with this, they need to employ various employees very carefully
and give them proper training so that they will be able to do their efforts according to the
scientifically developed method.

Bureaucratic method: This is the another part of classical theory which is formulated by
Max Weber in which he focused on the hierarchy position in the organisation. It will help the
company to make a perfection formation of giving and receiving the information as in this
formation all the higher authority is liable to control on the lower authority(Bon and Mustafa,
2013). This theory also help the TUI UK to effectively conduct their decision making,
controlling process, provide proper safety the workers and increase the profitability of the
organisation as in this method the responsibility will be given to the most capable and qualified
person.
Administrative Management- This theory is formed by the Henri Fayol in which they
tells that every activity in the organisation should be done in a systematic manner. The
systematic activities comprise pre-determine goals, separation of labour, and hierarchical
structure in the business organisation. This theory very helpful for the TUI UK to improving
their overall organisational performance and functions of the organisation. For getting the higher
success and growth management of this company needs to do proper planning, organising,
controlling, and coordinating with their employees.
Analyse management and leadership styles in relation to organisational structure and culture
Structure and culture, these both have a significant role in developing the organisation.
The structure is concerned with the way in which the organisation operates their business
activities and culture is the term which state that how the organisation as well as their employees
behave, experiences and the values which the employees as well as the member working within
the organisation follows. In the context of TUI UK they are following the persuasive
management style and democratic leadership style in their business which helps them to
implement the new changes in the organisation easily. Also, they are following flat structure in
their organisation in which they are able to create that structure where all the employees and
managers can easily communicate with each other(Chen, Zhu and Zhou, 2015). On the other
hand, they have follow the leadership culture in their organisation in which they are focussing on
the building team, inspire them to execute new plans and techniques so that they will be able to
accomplish their vision as soon as possible.
P2 Role of leader and leadership style in service industry
In any organisation leader plays an important role as the success of the business depends
on them. As leader have great impact on the employees mind as they are responsible for

managing, rewarding culture, motivating the employees etc. For managing their employees in an
effective manner leader are using various leadership style which will help them to conduct their
activities in an appropriate manner(Clark, Silvester and Knowles, 2013).As the TUI UK is
leading in the hospitality sector so the leaders need to operate their activities according to the
market and customers segments. For getting the success in the marketplace a leader plays an
important role which are defined beneath:
Role of leader-
 Provide a vision: This is the most important role of the leader within the organisation as
it is related to the vision of the company. The leaders of TUI UK are always able to
convey their vision to their employees which helps them to keep their employees more
focussed and motivated towards their efforts so they can contribute the organisation to
get the success and growth of the business.
 Inspire and motivate: For inspiring and motivating the employees it is the prime duty of
leader to use effective communication techniques so that they can easily communicate
with their employees which provide great motivation to them. It will help the company to
to keep their employees informed and give them specific feedbacks related to the job
performance, training sessions an many others.
Leadership styles:
Leadership styles are very useful for the companies as it provide the knowledge about
direction, implementation and motivation. There are various types of leadership styles which are
used by the TUI UK to effectively operate their activities in the difficult time in the workplace.
Some of the leadership styles are defined below:
Democratic leadership style: This the most suitable leadership style in which leader are
focussing on the participation of all the employees in the decision-making process. For adopting
this leadership style it is essential that the leaders should be more creative, intelligent, and
capable. So that they will be able to easily interact or communicate with their employees and
take effectively decisions (Shek and et. al., 2013). Although this style is more impressive but it is
very time consuming which become the reason for delay in the decision-making process.
Autocratic leadership style: In this leadership style the leaders focus on the full power
of the higher authority in the decision-making. The leaders tell the employees that what they
have do and how it to do without taking advice form them. Also, in the decision making process

they are not include their employees and take all the decision without any consultations with
them.
Hence, after understanding these above leadership styles it can be say the democratic
leadership style is best for the TUI UK as it will help them to attain higher support of their
employees in achieving the organisational goals and objectives(Shek, Chung and Leung, 2015).
P3 Review the management and leadership style in a specific service sector
There are various kind of management styles like Consultative, Collaborative, Persuasive
etc. but TUI UK is following the Persuasive management style. Other according to above defined
leadership approach TUI will adopt the democratic leadership style. These styles are compared
below with its merits and demerits:
Basis Persuasive management style Democratic leadership style
Definition This management style is same as
autocratic style as because in this
managers does not include employees
in their decisions but they give more
preference to spend more time with
their employees so they can know
about their wants and needs.
In this leadership style leaders
includes all the employees in the
decision-making procedure due to
which their employees are highly
motivated which results higher
productivity and profitability.
Advantage As all the decisions are taken by the
management so it provide benefit to
the company as it take less time and
reduce confusion in the decision
making.
This leadership style helps the TUI
UK to get the easy solution of their
complex problems and higher
satisfaction of their employees.
Disadvantage If the decisions will not be prove
favourable for the organisation then
in the case managers have to bear all
the loses.
It creates huge confusion in the
decision process as every employee
have different idea and opinions
which create big problem in
decision-making.

TASK 2
P4 Internal and external factors that influence management style and structure
There are various factors of external and internal environment which have great impact
on the management style and structure(Kao and et. al., 2015). Internal factors are those which
can be control by an management and the external factors are those on which management can
not control.
Internal factors
Finance and investment: For operating the organisational activities smoothly finance is
an essential part. With the help of proper finance and investment management TUI UK can
increase the strength of their persuasive management style.
Employees engagement: It is refers to the work of employees towards the organisational
goals and objectives. This element have great impact on the structure and style of the
management as if the employees will more indulge in the production process then it will help the
TUI UK to create an appropriate structure. Also, they will be able to create an appropriate
leadership style for motivating and inspiring the employees.
External factor:
Managing customers: It is essential for any kind of organisation to keep their employees
satisfied from their services. For this TUI UK needs to proper evaluate their customers demand,
needs, preferences so that they will be able to produce according to them. This will greatly
impacted on the management style and structure as the managers will be able to create healthy
environment in the organisation and adopt those leadership style which will help to motivate
their employees to do more efforts in order to achieve the organisational goals and targets.
Technological: In the present corporate world all the organisations are willing to adopt
new technologies in their processes so the possibilities of their success will be increase. For
successfully implementing new technologies in TUI UK it is necessary for them to changes their
structure from centralised to decentralised so all the employees will be able to communicate
easily with their managers(Talib, 2013). It will help the managers to motivate their employees by
telling them the benefits of adopting new technologies in their processes.

Characteristics of effective manager in face of increased technology
High achiever: The managers are liable to formulating appropriate strategies and vision
if the changes in technology will be occur. Then it is the main responsible of the manager to
motivate the employees to adopt new technologies. For this they must have proper knowledge
about the new technologies and innovations so that they will be able inspire their employees in
an effective manner.
Knowledge: The managers must have sufficient knowledge about all the organisational
operations that they are run successfully or not if they are not running then it is essential to
implement new changes. For this they should know about the use of new technologies like
computer, machines etc. so they will be able to tell the employees that how they use these
technologies in order to enhance the capabilities of them and as well as in improving the overall
performance of the organisation(Shek and Lin 2015).
Analyses the internal and external factors that influence management styles and structures
As per the above discussed all the internal and external factors it can be say that the
management style and structure have greatly influenced by the all these factors. All the internal
factors like finance, employees, management and the external factors like customers,
technological, political factors have greatly impact on the management style and structure of the
organization. For overcoming the impact of these factors on the organizational operations it is
essential for TUI UK to adopt Persuasive management style which will helps them to take the
decisions very fast according to the changing environment as in this style managers are taking
decision with themselves without any kind of distractions. Other, as they are leading in the
hospitality industry so it is require for them to adopt flat structure in their organization so that
they will be able to introduce their employees with the demands and needs of the customers and
provide them a better training program(Abulrub and Lee, 2012).
Critically analyses how management styles have been influenced by internal and external factors
After above discussed points it can be say that the persuasive management style is perfect
for TUI UK as it will help them to take decision speedily and accurately. This management style
have affected by the both internal and external factors in the both positive and negative manner.
As it promotes the managers to take their decision very quickly without any confusion. But on
the other hand it might possible that employees will not support in implementing new changes in
the organization because of the low morale, job dissatisfaction as they are not involving in the

decision making process. Along with this, the external factors have also impact on the
implementation of management style as if changes in customers preferences, technology etc. will
be changes then in this case it might happen that the employees will not ready to adopt changes
due to which the company have to changes their style from democratic to autocratic in which all
the decisions are taken by management without taking advice from the subordinates(Manz and
et. al., 2015).
TASK 3
P5 Management and leadership ‘hard’ and ‘soft’ skills in service sector
For operating the management and leadership activities appropriately then it is essential
for the managers and leaders of TUI UK to have some skills. It will help them to conduct their
activities with proper sufficiency. The skills of managers and leaders are divided into two
categories which are defined below:
Soft skill
Soft skill can be understand by the personal habits and traits of en individual which
defined that how they are working with themselves and with others. There are various type of
soft skills such as communication, dependability, active listening, effective teamwork and many
others. Some of the soft skills are described beneath:
Positive attitude: This skill refers to the positive capabilities of a leader and manager of
TUI UK as the managers is responsible to frame the strategies and leaders are responsible for
motivating and inspiring the employees towards the goals in a complex situation also.
Good communication skills: It is the most crucial skill which must have in the leaders
and managers as it will assist them that how they can establish proper communication with their
employees in order to enhance overall performance of the organisation. Good communication
skills helps them to speak concisely, build better interaction with customer and employee,
enhance the professional image etc. If the leader and managers of TUI UK does not have proper
communication then their employees will not able to share their ideas and problems even after
democratic leadership style(Vukšić, Bach and Popovič, 2013).
Hard Skill

Hard skills refers to the technical knowledge or training which a person get from their
experience, education and their career. There are various kind of hard skill such as technology,
writing, manufacturing, and many others. Some of the hard skills are defined below:
Accounting: This skills is related to the book keeping skills and financial entries so the
each and every transaction can be record. The accountant of TUI UK must have this skills so
they can keep all the records and information properly.
Marketing: As TUI UK is leading in the hospitality industry it is essential for the
managers and leaders to employ proper team of marketing and establish appropriate
communication channels within the organisation so that marketing team will be able to know
about all the demands and preferences of their and provide them all the services accordingly
(Mesu, Sanders and Riemsdijk, 2015).
P6 Management and leadership skill for future
As in the present business world scenario the competition become higher due to which
every organisation needs to adopt constant innovations in their activities so that they will be able
to get the competitive advantage. Here are defined about the various skills of managers and
leaders which they needs to have for succeeding and sustaining in the future market place:
Skills required by leader of TUI UK:
Time management- In the hospitality industry time management is the foremost as the
customers are highly expected from them to do their work on time with great efficiency. It is
mandatory for the leaders of the TUI UK to establish a better time management in the employees
work. For this they should do proper analyse the workload of their employees, assign priorities,
and motivate them to focus on the production task.
Diverse employ management- This can be understand by that an organisation have
different employees which all have multiple lifestyle and personal traits. In order to achieve the
goals and objectives of the organisation leaders needs to understand their employees behaviour,
background and belief which can affect on their making because of their diverse environment
Skills required by managers in future
Soft skill assessment- Generally managers are focussing on the hard skills but they must
have some soft skills like communication, responsibility, teamwork etc. These soft skills will
help them to create a healthy environment within the organisation and build balanced

relationship with their employees which results higher success and growth in the
marketplace(Wang and Hsieh, 2013).
Technological skill- This is the another foremost skill of the manager as it refers to the
knowledges and capabilities of new technologies, innovations etc. It is essential for the manager
to well introduced with new tools, machines, systems and methods so that they will be able to
tell to the employees and introduce them with the benefits of these new technologies so that they
will inspire and give their contribution in implementing these new changes.
A critical evaluation of how, to better use of the technology, management and leadership skills
have developed
In the present corporate world scenario technology plays an important role in the success
of the business(Agrawal, Khatri and Srinivasan, 2012). As it helps in enhancing the management
and leadership skills by providing knowledge about new innovations and technologies. Because
of development of technology leaders are able to connect with their employees easily and can
motivate them towards the goals of the organisation due to which they are able to enhance the
skills of diverse employ management. Other than that, technology also help the managers to
formulate their strategies and plans by taking the information about their customers from various
websites, social media etc. so they will be able to make their strategies according to their
customers preferences. It will helps them to increase their profitability and provide higher
customers satisfaction.
TASK 4
P7 Compare service sector change management systems and leadership style
Change management is that process which is used by the organisations to manage all the
changes with the help of appropriate methods and procedures (Change management, 2019). This
system is adopted by the TUI UK to implement various plans for adopting changes, control on
the changes and help the employee to adopt these changes in the organisation. It is very useful
for the TUI UK to adopt as it will help them to tell about the benefits of changes in the
organisation so that they will be motivate to adopt this changes which results TUI UK can easily
meet their desired outcomes(Lee, Chen and Lee, 2015). For successfully implementing changes
in the business various companies are adopting different management and leadership style which
are described below:

Particulars TUI UK Thomas Cook
Management style As TUI UK is operating at
multinational level due to which
they adopting persuasive
management style in which all
the decisions are taken by the
managers without involving the
employees. This management
style helps them to take decisions
effectively without any kind of
distractions or confusions(Turner,
Swart and Maylor, 2013).
Managers of Thomas Cook follow
participative management style as it
will helps them to boost the morale
of the employees and enhance their
performance. As in this
management style managers include
all the employees in their decision
making process so that the
employees also able to share their
ideas, opinions and problems. This
will help the managers to keep
motivated their employees towards
the organisational goals which
results higher employee retention
and growth of the organisation.
Leadership style TUI UK is adopting democratic
leadership style in their
organisation as it will enhance the
morale of the employee and
improve their overall
performance as in this leadership
style all the employees can move
freely their ideas and opinions
among all the leaders. This is the
great leadership style which can
be follow by an organisation as it
has direct impact on the
employee mind in a positive
manner.
They are following the autocratic
leadership style in which the
decision making power is
centralised. In this style all the
leaders give directions to their
employees that what they have to do
and how they required to do in
order to achieve the organisational
goals and objectives.