Leadership and Management Styles in Thomas Cook: A Report

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LEADERSHIP AND MANAGEMENT
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EXECUTIVE SUMMARY
This report has consisted of the different management theory and leadership styles use in
Thomas Cook and the service industry. Along with this the current skills that are the soft skills
and hard skills are also discussed along with the future skills that will be required in Thomas
Cook and TUI with help of this report we have understood the importance and effects of the
digital technology in Thomas Cook and TUI along with the effects of the change management
and the leadership styles in the both the service industries.
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Table of Contents
EXECUTIVE SUMMARY...................................................................................................................2
INTRODUCTION............................................................................................................................. 4
OVERVIEW..................................................................................................................................... 5
PART1............................................................................................................................................ 6
LO1.................................................................................................................................................6
P1............................................................................................................................................... 6
P2............................................................................................................................................... 8
P3 M1.........................................................................................................................................9
LO2............................................................................................................................................... 11
P4 M2.......................................................................................................................................11
PART2.......................................................................................................................................... 15
LO3............................................................................................................................................... 15
P5............................................................................................................................................. 15
P6............................................................................................................................................. 18
M3............................................................................................................................................20
LO4........................................................................................................................................... 21
P7............................................................................................................................................. 21
M4............................................................................................................................................22
CONCLUSION............................................................................................................................... 23
REFERENCES.................................................................................................................................24
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INTRODUCTION
This management report is about the leadership and management styles that are being
adapted in Thomas Cook. A report will be prepared for the Human Resource Manager
mentioning how digital technology has influenced the leadership and management styles and
strategies in Thomas Cook. The theories of Taylor, Weber and Fayol are to be explained in
context to Thomas Cook along with the analysis of the digital technologies in the organization.
Further in this assignment the second stage will comprise of the identification of the
management role in Thomas Cook the development of the soft skills and hard skills and the
required skills for the managers in the future in context with the digital technology and the end
an analysis is to be given how digital technology influences the managerial roles and the
working of the Thomas Cook (Dexter, et al., 2016).
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OVERVIEW
Thomas Cook is travel company formed on 19 June 2007 by the merger of Thomas Cook AG
which was the parent company of Thomas Cook in UK and Ireland. The company is a public
limited company headquartered in London which serves globally. The key person of the
company is Frank Meysman, Non- Executive Chairman and Peter Fankhauser CEO of the
company. The company has 2926 stores and 32722 employees working in the UK and Ireland
which has made the company to be the second largest travel agency in the UK. Thomas Cook
purely deals into travel, tourism and hospitality including the visa, tickets and passport facilities
generating annual revenue £9,584 million in 2018 (Thomas Cook,2019).
FIGURE 1: Thomas Cook
[Source: Thomas Cook,2019]
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PART1
LO1
P1
There are various theories which are given by various management experts for the smooth
functioning of the organization in the form of classical and contemporary theories. Classical
management theories are the fundamental theories which focus on the productivity a
deficiency of the employees and the organization. Thomas Cook has adopted various classical
management theories for the sooth and efficient working in the organization, the following are
the classical management theories (Kralj, 2018):
Bureaucratic theory of management: Max Weber
This theory was given Max Weber stating that bureaucracy is the best way to set up an
organization where a set of rules, regulation, and procedure is being followed for the
systematic working in the organization. This theory states that there should be clear directions
and orders given to the subordinates with a systematic hierarchy and unambiguity in the
organization. This theory focuses on the efficiency of the employee and the organization
without welcoming the ideas and suggestions of the employees and flexibility in the
organization. Thomas Cook at times has adopted this theory in order to set up the new stores at
different locations but bureaucracy is not appropriate for the travel agency as there are so
many changes in the trends and preferences that employees and the tour managers have to be
very creative and keep themselves updated to flourish the business (Khorasani and Almasifard,
2017).
The scientific theory of management: F.W Taylor
This theory was given by F.W Taylor his theory emphasis on the efficiency of the employees and
the productivity of the organization. Unlike Weber's theory, Taylor stated that the employees
should be rewarded for the work done by them increase the productivity of the employees. To
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select the right candidate for the job is the main essence of this theory. Thomas Cook follows
this theory to a great extent and has helped the company to flourish the business because of
which it is working on the global level with all the efficient employees with negligible employee
turnover of the company (Khorasani and Almasifard, 2017).
Management Theory: Henri Fayol
The management theory is given by Henri Fayol focuses on the essential functions to be
performed in the organization. The management theory is almost applied in every organization
to carry out the smooth functioning of the employees and the organization. Fayol’s
management theory comprises of mainly five functions that are planning, organizing,
commanding, co-coordinating and controlling. Thomas Cook works on this theory very keenly to
manage the daily cores and fulfil the objective of the company in a very systematic manner
(Peaucelle and Guthrie 2015).
Role of Digital Technology in the above theories
Digital Technology has played a crucial role in the application of these theories in Thomas Cook.
Digital technology is the heart of every travel and tourism company as it gives all the facility
online to all the travellers but this is not limited only to the bookings and information it is
applicable in the management as it helps in taking a feedback from the employees and the
customer, it has enabled to keep control of the efficiency of the employees and removed so
many unwanted vacancies from the organization by making the working less cumbersome and
easier. The above theories are applied effectively with the help of digital technology by making
it more fruitful in the organization.
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P2
There Are various leadership styles which re-adopted by Thomas Cook for its effective and
efficient working:
Role of a Leader: Leadership is the ability to lead the employees towards the organizational
goal in an effective manner by taking various decisions, giving a clear vision, setting the goals,
by taking a risk, formulating different strategies by adopting different leadership styles.
Democratic Leadership: This type of leadership is also known as a participative style where
there is equal involvement of superior and subordinate in the decision making the process. The
subordinates are free to express their ideas, suggestions and opinion in the organization but
still, the group is under the leadership of the leader. This increases efficiency. Thomas Cook at a
macro level follows this type of leadership to attain the efficiency and new ideas from the
employees who have helped to make a remarkable achievement in the tourism industry
(Yahaya and Ebrahim, 2016).
Strategic Leadership: This type of leadership is based on the strategies that are formed by the
managers and influences the employees to work in order to achieve the organizational goals.
The leaders arrange for the strategies, allocate the task and arrange the resources for doing the
work. The leaders effectively use the reward and incentive system to maintain the productivity
of the employees. Thomas Cook also plans various strategies for various departments and
provides the incentives and rewards to the subordinates, these strategies help in the fulfilment
of the organizational goals (Iqbal et al., 2015).
Laissez-Faire Leadership: In this type of leadership there is the delegation of the task among
the subordinates by the supervisors and there is no close control on the task performed by the
subordinates and the level of productivity in the employees is less. The power of decision
making lies with the subordinates which result in some advantage and disadvantage to the
company. Thomas Cook does not practice this type of leadership in the organization as the
productivity and efficiency will decrease (Fiaz et al., 2017).
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P3 M1
The service sector is this assignment is the tour and travel sector in this service sector the
Thomas Cook is serving globally to all the travellers with different types of package tour at
different destinations along with the visa, tickets, accommodation and meals etc. to lead such a
organization it is very important to have an effective leadership style like democratic leadership
style will be the best for the tourism industry (Fiaz et al., 2017). Democratic leadership style is
the participative leadership where the employees are also involved equally in the decision-
making process and they are welcomed with new ideas and fee to share their opinion. There
are various benefits of this type of leadership which are as follows:
 Solution: This leadership is excellent at solving the complex problem with the
participation of all the team members by giving various opinion and ideas which helps in
solving the problems and take out an effective solution.
 Good for business: The business which follows the collaborative and participative
leadership style encourages the employees to work in the organization and it lasts for
the longest time, hence it is a good business fit.
 Low employee turnover: Where the employees are being involved in every process and
plan of the organization they get a feeling of belongingness and hence the employee
lasts for long in the organization and the turnover is less.
 Stronger Teams: Democratic leadership helps in building up a dynamic and strong team
which enhances the business and working of the organization.
Organizational Structure and culture
The various leadership styles influence the organizational structure and culture like democratic
leadership style gives an equal opportunity in the organization and creates a participative and
healthy work culture where there is a proper hierarchy which is flexible in nature. In an
autocratic leadership style there the organizational hierarchy is there where there is no
alteration and flexibility which leads to unhealthy and rigid work culture and employee
turnover is high and the productivity is less (Yahaya and Ebrahim, 2016). If the laissez-fair
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leadership is followed in the organization there is no control over the work done by the
employee and leads to less productivity ambiguity and work culture becomes very flexible and
taken for granted which is not advisable for a tourism company. In this manner, different
leadership styles influence the organizational structure and work culture.
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LO2
P4 M2
Management consists to various managers and leaders who lead their team and the team
members according to the situation and condition but there are various factors which influence
the management styles in Thomas Cook which is working on a global level.
Internal Factors:
 HR Practices: HR practices are very important for every organization as it plays a very
crucial role in the formulation of the management styles. If the HR practices are good
enough then the managerial styles will be democratic and a flexible one where the
employees are satisfied with the HR practices and the perks then the culture will be very
good and ultimately the management style will be applied.
 Culture: Organizational culture plays an important role in the formation of the
management style because if the culture is light and healthy then there is no need to
apply the harsh and autocratic type of leadership the management can make the
employees get work done in an effective manner without being strict to them style
(Yahaya and Ebrahim, 2016).
 Communication: effective communication affects the management style to a very great
extent. If there is free and open communication between the manager and the team
members then the ambiguity is decreased and there is no need to be rigid and strict
with the team members as everything is very transparent between the leader and the
team member.
 Organizational Resources: Every organization’s management depends upon the
availability of the resources like staff, technologies, physical resources, financial
resources etc. and to a great extent it depends upon the management and the team
how they utilize the resources n an effective manner.
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EXTERNAL FACTORS:
 Digital technology: The biggest external factor is the use of the digital technology, as
with the use of digital technology the work of the management has been reduced and
become more effective and error-free which has removed unnecessary vacancies from
the company. Digital technology promotes effectiveness in the work which influences
the management styles in the organization (Yahaya and Ebrahim, 2016)
 Market Trend: The market trend, choice, preference and taste of the customer and the
client changes with the evolution of time and technology. This also influences the
management styles if the demand for the work in high and there is pressure then the
management accordingly chooses the management styles.
 Economy: Economy also affects the management styles because the recession, boom
and moderation affect the business cycle because of which the work and production
also get affected and the management styles are being affected with the change in the
economy. Along with with this the governmental policies, tax slabs, legislation etc. also
influences the management styles.
 Competitor: The level of competition to a great extent influences the management
style. The reason is if there is high competition then there is a need in the management
to reach to a next level with a strict and harsh management style. If the competition is
not that much strong then the management style is not so harsh and strict therefore the
competition that prevails in the market influences the management styles (Yahaya and
Ebrahim, 2016).
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