Leadership and Management for Service Industries: Thomas Cook and TUI

This report provides an in-depth analysis of leadership and management within the service industry, specifically focusing on Thomas Cook and TUI. It begins by explaining classical management theories like bureaucracy, scientific management, and administrative theory and how they apply to these companies. The report then reviews different management and leadership styles, including democratic, inspirational, and authoritative approaches, as well as autocratic and laissez-faire leadership. An evaluation of current management and leadership styles is presented, along with an examination of the roles of managers and leaders, incorporating Handy's Model of organizational culture. The study further analyzes internal factors such as employee engagement, personality, and belief systems, as well as external factors impacting management styles and structure. Finally, it compares change management systems and leadership in implementing change across different service industry organizations.

Leadership &
Management for
service industries

Table of Contents
INTRODUCTION...........................................................................................................................1
Activity 1.........................................................................................................................................1
P1 Explaining the different classical management theories within the Thomas Cook and TUI.1
P2 Reviewing the management and leadership styles in Thomas Cook and TUI......................3
P3. Evaluating the current management and leadership style’s..................................................4
P4. Analyzing the internal and external factors that affect management styles and structure in
TUI..............................................................................................................................................6
P5 Critically analysing how specific management style that influenced management styles and
structures.....................................................................................................................................7
P6 Assessing the current management and leadership hard and soft skill..................................8
P7 Comparison of different service industry organizations change management systems and
leadership in implementing change. .........................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
REFERENCES .............................................................................................................................14

INTRODUCTION
Service company need to be create the edge by doing things differently from the others,
while continuing to strive for better performance quality. It is very necessary for the company to
deprive the long-lasting way of performing activities in to more performing manner. in terms of
leadership which is most required thing to deserve attention because this sector represents 90
present of employment and nearly 80 percent of gross domestic product in the United States.
This is the best way to promote the business activities with the help of leadership approaches.
Present study based on leadership in service sector. For the study will be taking Thomas Cook
and TUI which is the largest chain in Travel and tourism industry. Study represents different
classical management theories and apply it into the TUI or in a comparable service industry
organization. Further also, it covers leadership styles in TUI or a comparable service industry
organization.
Activity 1
P1 Explaining the different classical management theories within the Thomas Cook and TUI.
Classical management theory is the theories which are accepted in traditional manner or
long established. Classical management concept is the homogeneous idea of the management
that evolved in the late century.
Bureaucracy Classical management theory
This theory of classical management is characterized by rules, policies, procedures,
impersonal relations and elaborate and fairly rigid hierarchy of responsible relationship (Agote,
Aramburu and Lines, 2016). Management has always remained a challenge for people. This
theory defined the structure from top to bottom stage of an organization. besides, by applying
this management theory in the business function Thomas Cook can maintained their hierarchy
communication in an effective manner. Below is given some features of the bureaucratic
structure that company apply to their business structure. However, TUI applies this in order to
meet out the company policies, procedures and interpersonal relations fairly with the
stakeholders.
 This theory defines that proper hierarchy management structure can easily set the roles
and responsibilities of the employees from top to bottom.
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 Division of work is another feature of classical bureaucratic theory. Under which TUI can
divide work as per the individual specialization. Through this process individual
employees are very well known about its limitations and rights.
 By applying this bureaucratic classical theory Thomas Cook more focused on the policies
and procedures in order to maintained the ethical business environment.
Bureaucratic classical theory believes to keep all records of everything in order to analyze thing
into more deeper manner (Ansoff and et.al., 2019).
such as TUI needs to store all necessary documents and files at one place that helps in making
decision process.
Scientific Classical Management theory
Scientific management theory is based on such task or things which is scientifically
designed which can replace with old one easily. This theory follows the rule of thumb method in
management practices (Bouckenooghe, Zafar and Raja 2015). From the given following
principles can help Thomas Cook to maintained the proper management function and helps to
gain effective returns.
 As per this theory each task of the company should based on scientific terms so that it
will easily convert into the older one.
 Employees must be trend and productive in their own field to be more efficient towards
their job role.
 Division of work which define there should be a proper cooperation between
management and employees within the company. Thomas Cook can get several benefits
from this principle of management in terms of maintaining good relationship.
Administration Classical management theory
Administrative theory that could be applied by the company in order to gain some
administrative gain. This theory clearly differentiates between operating and management
activities (D’Innocenzo, Mathieu and Kukenberger, 2016). As per this theory they sated four
major functions of management that is Planning, Coordinating, Organizing, Controlling and
commanding. It helps TUI manager to run business functions more smoothly. If Thomas Cook
adopts this theory they should liable to focus on the following principles given below:
 Division of work.
 Authority and responsibility
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 Discipline
 Unity of Command
 Unity of direction
 Subordinates of individual
 Remuneration of personnel
 Order
 Centralization
 Scalar chain
 Equity
 Stability of tenure
 Initiative
 Esprit de corps
Overall, this theory defined the different objectives and goals through TUI can easily
manage the work system more appropriately. TUI applied this theory in order to beat out the
main objectives and goals in order to sustained in the market growth. This theory can help to
discover the new management style and growth towards the new management style opportunity.
P2 Reviewing the management and leadership styles in Thomas Cook and TUI.
Management styles
Democratic Management style: Democratic leaders of TUI should always attract and
passionate towards the management task and involves in every company decision making
process at TUI. By applying this management style to the team members. Thomas Cook need to
showing faith and trust on the employees and should give respect to their inputs.
Inspirational management style: This type of management style requires a great talent,
skills, big heart and an honest desire in a person. That helps to develop enthusiasm between other
employees at workplace. This kind of TUI leaders motivates around the workers to get the best
outcome results.
Authoritative management style: In this management style where leader take strict action in
order to manage the work and create some authoritative type of management style. It helps
Thomas Cook to be in the proper structure. This is the organizational goals and effective
leadership style and goals (DeCenzo, Robbins and Verhulst, 2016).
Leadership styles
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Autocratic Leadership: This is the leadership style in which leader are more aggressive
and new emerging market growth. This kind of leadership can help TUI to execute better task
implementation and growth.
Laissez Faire Leadership: This leadership style is completely opposite from the above
leadership style. This kind of leaders are very polite and understood to the other people. This
leaderships style more beneficial for TUI to build positive environment and growth.
P3. Evaluating the current management and leadership style’s.
The role of managers and leaders are different from each other. Manager role is to
overseeing a department or group of employees in TUI. Managers are the common role of every
organizations who responsible to manger work in a systematic manner. They also liable to
accomplish the task in a specified manner.
Managers of TUI adopts Democratic management style to handle the situation. In the
contrast, Thomas Cook managers are basically have different culture from TUI, manager of
Thomas Cook Authoritative approach that helps to manage work into more effective manner.
working as in manager is means the person who assign to that job is responsible to adhere all
professionalism (Dóci and Hofmans, 2015). Contrast, leader concept is based on feelings where
the leader always considering the emotion of employees.
TUI handling the business with the help of digital technology where they handle business
through sites. It helps manager to perform in more productive way.
Provide an explanation of the role of leader and different leadership styles.
Handy’s Model of organizational Culture
As per this model, Handy define organizational culture by four different kinds of culture.
Power Culture: In within the organizations, power is held by some persons who take
overall decision-making approach. In this power culture employees are known for its
achievements rather what they do and how they do. In this culture, everything is taken by the
seniors that helps to in quick decision-making process. Power culture is usually a strong culture,
though it can swiftly turn toxic. This culture helps TUI to sustained the productive environment
within the organizations. Power culture defined TUI as a supported company and result oriented.
On the other side, TUI organization culture is defined and gained new business models by the
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help of this model. It involves different roles of both leader and manager where they handled the
different conditions to get the best higher opportunity for the business
Task Culture: Task culture where teams are formed to achieve the specific task and
objectives. Such as to solve the client query. Thomas Cook form a group of teams to manage the
customer service (Hughes and Wade, 2017). That particular team are meant for managing
customer queries. In this culture, every member should need to contribute the best developing
result-oriented goals. This will help to re continue the long-lasting way of promoting the
effective task. In such kind of culture, Thomas Cook every member of the team liable to give
equal contribution towards the success. In task culture leader motivate to employees as per the
assigned task. On the same side, managers are the person who manage the work accordingly.
Both role of leader and manager are different and unique.
Role Culture: Role Culture is a culture where every employee is delegated roles and
responsibilities according to the specialization. TUI hire employees as per the specified job role
to build the productive employment growth and effective learning task. In such kind of work
culture power comes with high responsibility in such a work culture.
Person Culture: In such kind of the culture where employees feel more important than the
company. In such kind of culture sometimes organization needs to face critical situation due to
the irresponsible behavior of employees. Thomas Cook suffering from this behavior of
employees due to which they suffered customer dissatisfaction.
Analyzing the management and leadership styles in TUI or Thomas cook
By explaining different styles of management and leadership above, it has been analyzed
that organization can adopt any of them to make the business more effective and profitable. By
applying all styles (Lee, 2017). Organization can get both advantage or disadvantage opportunity
goals. This helps to define the effective learning task to build up the new working approach and
build up the effective management approaches. Lie, by applying authoritative management style.
Employees can be happy or dissatisfied as well as not considering the manager negative
behavior. Another disadvantage of this style is Performance issues, if company adopt affiliative
style of professional leadership. Company could be preparing business towards the poor
employee performance. The strength of those leadership management style is to manage the
crisis management by using professional leadership styles.
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P4. Analyzing the internal and external factors that affect management styles and structure in
TUI
Internal Factors
Employee engagement: Employee engagement is the extent to which employee
commitments, both emotional and intellectual, exist in relation to accomplishing the work,
mission of the organization. If the employees having different goals and thought process.
Company will never work with full motivation. Due to these differences' management get
influenced. These factors create conflict and mismanage environment and goals. It also helps to
bring the new management style and growth challenge.
Employee Personality: Employee personality is never ignored by leaders and managers.
Leaders should always need to be more authenticated and believable as per the growth
development. Positive attitude always adopts or carry forward the positive things. Further,
negative personality will always spread negativity among the other team members. This situation
influenced managements and their ineffective target goals. Different personality of an individual
affect the business in different aspects. On the other side, manager has to handle the different
kinds of employees in different manner.
Belief systems: This is the foremost affecting element that influenced management style.
In order to maintained the proper systematics performance. Manager should need to participate
with employees in solving problems together (Mittal and Dhar, 2015). For example: One person
believes in team work that, team work is the best way to accomplish the task into more
productive manner. so in the other hand, another person believes that no individual work is more
productive. It would difficult for the managers to handle this type of situational goals.
External Factors
Employee diversity: this is the most common and frequent management issue that
constantly affect the management performance. TUI hire employees from diverse culture due to
which some company barriers have arrived. Companies recruit employees of different city,
region, ages, gender and cultures. This situation has occurred language barriers which is difficult
for the manager to handle. This factor affects the overall company goals and objectives. Such
external factors might have affect the overall business environment.
Different technological factors: In hospitality industry technologies has given more
impact in terms of positive and negative manner. Technology innovation changes the
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environment is very dramatically manner. In order to reach that point. TUI should always need to
adopt all latest technologies to make customer happy and satisfied (Nallusamy, 2016). Digital
technology is one of the most prominent techniques these days that company should need to
adopt. It is the responsibility of manager to adopt the latest technology and growth. For that, TUI
needs to invest on the R&D process to enhance the effective working goals.
Employee Roles: In within the organization, employee has many roles to perform in within
the organizations. Every employee come to the TUI or in any organization. It is the responsibility
of the managers to guide them in a different manner. so, at some point it become difficult job for
managers to handle the different employee roles. Management styles helps to get over from the
issues and task.
P5 Critically analyzing how specific management style that influenced management styles and
structures.
External and internal factors have given both positive and negative impact on the
management styles.
External factors: External factor are the uncontrollable factors within the organization. That
should be adopted by the company (Naseer and et.al., 2016). Such as Digital technology this can
be the strength of the company if company adopt all new technologies within their company.
There are some factors that influenced manager such as employee personality, Employee morale,
organizational culture, technology etc.
Strength
 external factors help to introduce new changes.
 It helps to enhance the employee performance by adopt often changes within the
organization.
Weaknesses
 External factors are the uncontrollable factors which affect company in negative manner.
 Lack of digital technology can affect the company reputation and fails to grab new
opportunity and growth.
Internal factors
Internal factors are controllavble factors who controlled by the managers or leaders. This
affect the business challenging goals. Internal factors influenced by employee behavior,
employee engagement or employee diversity (Waring, 2016).
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Strength
 It helps to address new management styles for employee motivation.
 It helps to grow employee behavior by addressing the issues.
Weaknesses
 Employee behavior, diversity level sometimes reduces the employee productivity.
Discussing and evaluating the future management and leadership skills required by
managers.
By taking more responsibility and roles in future, managers should need to adopt the more
management and leadership skills to fulfill the TUI goals and objectives (Parker Parsons and
Isharyanto, 2015). There are given some skills that required by the manager in order to achieve
the future goals in TUI
Technology management skills
It is the most beneficial skills that every manager should have in their business career.
Technology is always change and impact some new changes within the organizations.
Technologies creates lots of opportunity and strength for the company that helps in solving the
business issues, conflicts management. These skills make manager more capable towards
building workplace roles, data management of TUI customers, Privacy and others. Managers will
need to understand technology enough to keep abreast of and anticipate emerging issues.
Out centric Leadership Skills
Effective managers and leaders are going to need to be less egocentric. It will help them
to understand employees in more effective way (Stempel, Rigotti and Mohr, 2015). In other
words, it helps to develop manager personal or professional skills. This skill is very much
effective and developing in terms of encouraging development task for the effective
management. Manager should be out centric which more focused on developing the people and
teams around them to be active and valued contributors.
P6 Assessing the current management and leadership hard and soft skill.
Hard and soft skill for Hotel manager
Hard skills
Sales and Marketing skills: Hotel manager should know about the sales and marketing
skills to gain more customer attraction. Manager should understand and utilize the measures to
get the success in the market. As per the present scenario, Digital marketing is the trendiest in the
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market that provides the best outcomes to the company. Hotel manager of should make itself
more creative and thoughtful to think new sales and marketing ideas.
Human Resource Management: Combines many of the leadership soft skill with
practical aptitude in recruiting vetting and disciplining in the field. Hotels manager should also
need to evaluate and analyze the employee requirement as well.
Food and Beverages Management: Hotel manager should also have known about the
laws and policies of food beverages and managements. It helps to evaluate the long-lasting
results and better productivity goals.
Soft Skills
Team Leadership: this is the soft skills which is required by the manager in order to
make employee feel easy and in comfort zone. This will help to promote the effective employee
development task and also very necessary and important to lead the team in a higher efficient
manner. hospitality sector has a huge department where requirement of effective team leader is
very important. Manager should also be a good leader to understand and manage the employee’s
queries and manage conflict among them.
Coaching: Manager is a kind of mentor or the guide who always make employees on the
correct path. Coaching helps to develop a new managerial skill and who guide to be the better
manner. excellent hospitality manager has always improved the competency level of employees
or of the team members through effective training and development, recognition and motivation.
So, in other words, manager should have that skills to perform all this specific task. That also
very helpful for the better motivation growth in the future.
Influence: Influence is another skill that should be in manager while they dealing with the
employees. Manager has lots of responsibility and pressure to accomplish the task and business
objectives. On the other hand, by influencing the employees will help employees towards the
better positioning level. Effective and efficient manager always take feedback to ensure weather
employees need anything or not to just maintained the positive environment in the business
activity.
Critically evaluating in order to advancement in the digital technology, management and
leadership skills in the service sector.
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In the service sector, there are three skills that is the most crucial and important in within the
leaders and managers. Sometimes due to not having any such skills will make the company less
effective as compare to other competitors. This will make company low productive in order to
sustaining in the market. Such skills are digital technology, management and leadership skills.
Management skills required to manage the employees task and distribute the work in an equal
manner. besides, that it also need to be more evaluative and more confirming towards the task
and goals. Leadership skills also very much required to make the things more clear and efficient.
It is the more crucial and long-lasting way towards the measuring the new building and new
process to achieve the business goals. So, in order to be an efficient manager individual should
have skills of leadership, digital marketing or management.
P7 Comparison of different service industry organizations change management systems and
leadership in implementing change.
Change is a constant in the workplace especially in the era of digital transformation.
Change management is very important and crucial for the company who always need to upgrade
and enlarge the new working styles. Different service sector performing the different task at the
time of time management. TUI is the best managerial task which is most important and leading
development goals to address the all change management. Change management is the most
crucial task for the company to implement the work into more efficient manner. hospitality
industry, health care industry, travel and tourism industry. All kinds of industry allow to adopt
change management techniques with the help of some effective result and goals by applying
technological evolution, process reviews. Besides, leaders and managers who help and manage
employees to resist change. All kinds of businesses adopt leadership style to manage change
management.
Adopt mentoring and coaching styles: this is the best way or method to adopt change
within the company. By mentoring and guidance given by leaders and managers would help
employees to understand the benefits of change and also helps to make sure the good outcomes.
In order to adopt changes company, it is necessary for the company people to handle the long
lasting situational task. In leading change management process leader are very much effective
inters of managing ineffective work task. In other words, by rewarding those who adopt to the
new policies and procedures, leaders can motivate other people to follow them and overcome
objectives and barriers to change.
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