Analyzing Leadership Styles at TUI Group: A Report

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LEADERSHIP AND MANAGEMENT FOR SERVICES INDUSTRIES
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Table of Contents
Introduction....................................................................................................................................................3
Part-A.............................................................................................................................................................4
Part –B.........................................................................................................................................................14
Conclusion...................................................................................................................................................19
References....................................................................................................................................................20
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Introduction
TUI Group is a tourism union international; German travel and tourism company which is
famous for tour and travels services. This company headquartered in Hannover, Germany. It is
the largest company in the world and provides a facility for its customers. It business is expended
in all over the world. Company businesses are hotels, airlines, cruise ships and various types of
retail stores. In this report, it describes various kinds of classical management theories and their
relationships with the TUI. It also discusses with the management and leadership style and its
connections with the organization. In its other task, it describes how TUI present management as
well as leadership styles linked with the uses of digital technology. In this report, it will describe
the roles and different leadership styles. In its second part, it represents the investigation and
analysis of external and internal factors of management style. In the report, it discusses a critical
analysis of specific management style in TUI.
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Part-A
a) Assess different classical management theories and apply these in TUI.
Classical theory of management – In this, there are various authors and scholars views of
management or classical theory. It is analyzed that management has always seen as major
challenge for people. There are different types of management roles and responsibilities which
are performed by manager such as planning, recruiting, directing and controlling. The company
realized that there are some scientific methods which assist in enhancing productivity and
profitability effectively. In this, different authors explain the classical viewpoint that is also
called as classical management theory that includes administrative, scientific and bureaucratic.
There are various types of classical management theory which are described as follows:
Scientific management – It is that theory which is popular for its application of engineering
science at the production platform and at operating level. The theory was established by Fedrick
Winslow Taylor and it is also known as Taylorism. This theory is mainly focus on improving
effectiveness and efficiency of every worker within an organization. TUI can adopt such
management theory which can help them in managing and maintaining all business operations or
functions in better manner.
These will emphasis on enhancing productive ration with the help of using intensive technology
and methods. Along with this, it is that theory which incorporates to performed work in better
manner. These are repetitive in nature and individual perform their regular actions and functions
for gaining desired goals and objectives (Bush, et. al, 2019).
There are various activities which are not required for a person in order to resolving specific
issue and problem. It is mainly concentrate on developing and better understanding among staffs
and company manager required to make improvement in their employee’s efficiency. This will
assist in break down the work into different signals and describing the expected postponement
between improves in business productivity.
Bureaucratic management
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It is formal system of organization which is based on defining hierarchical levels and manages
all manager roles. This is the systematic formation of company and it will ensure about
efficiency and economic effectiveness. It is an ideal theory and model of management to carry
out structure into concentration. This theory was established by Max weber which consist two
components such as structuring an organization into hierarchy and clearly describing the rules
which assist authority as well as organization members. TUI can adopt such theory of
management which helps managers in equally treat their employees and staff members while
doing work. They required distributing every task in equal manner and also analyze their
workers behavior accordingly.
Administrative theory of management – It is another type of classical theory which help in
organizing and managing various things in better manner (Ellis, 2018). This will assist TUI
Company in defining tasks, division of employees and maintain hierarchical structure of an
organization. Along with this, the theory help firm in improving the employee’s performance as
well as whole management functions effectively. This theory of management aids in managing,
planning, organizing, functioning and controlling major business operations in proper way. For
this, respective company can analyze whole employee’s behaviors and distribute work
consequently.
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b)Review the management and leadership styles in TUI.
Management and leadership style in TUI
In the current time, tour and travel industries grow in the market place. These are the fast-
growing companies provide their services in all over the world. The reason for increasing the
companies is to earn a good source of development and maximizes the profits. In that case, these
companies accomplish goals, targets and objectives for success to increase their hospitality
business.
Management and leadership style plays a vital role in the organization. Every manager of the
tourism sector industries concerns their employees, workers with a particular management style.
The manager aims to influence the employees to do work systematically and show their excellent
performance by accomplishing the organization goals and objectives (Bush, et. al., 2019).
Managers and leaders are the base of the organization these people operate the business
effectively and manage their employees. There are various types of management and leadership
style, which includes coach system, visionary method, servant style, democratic method, laissez-
faire and hands-off method and transformational methods. All these styles are used in various
types of organizations.
In the organization, leaders can be a manager, highly experienced employees, professionalism
person and those people who can handle all the responsibilities of the organization as well as
employees.
Management styles are Authoritarian style, democratic style, liberal style, corporative style,
paternal style, charismatic style, autocratic style and bureaucratic style.
Management and leadership styles:
TUI focus on adopting effective leadership styles into their business management. The purpose
of using active leadership styles is to achieve the goals and objectives within the given time.
Personal leadership style:
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Company managers focus on enhancing their own leadership style for improving their skills. It
not only supports to their individual but also helps to the organization at the professional level.
Autocratic leadership style:
It is the traditional method and used by many organizations. The company use this style in their
historical time. It fulfils the basic requirements of the company. Managers give instructions to
the employees and supervise them. On the other hand, employees perform the activities by the
orders of the managers. Their behaviour is also influenced in this type of style through
despotism, forcing, and criticism (Renz, et. al., 2016).
Democratic style:
On the past experienced and observation company managers require to upgrade their
management and leadership style for company growth. In that case, it is essential for the
company to adopt an effective management style. This democratic style helps to the company
because it is focused on appreciate the people and concentrate on the company success.
Liberal style:
Company make efforts to upgrade their management and leadership style, and this style is fit
into its management. This management style is similar to the democratic style but is focus on
employee’s freedom to take decisions and actions rather than pressuring them to do work hard. It
is the most effective leadership style which is used by the company. The purpose of using this
style is to company make leadership evolution for the experienced leaders and upgrade their
skills and abilities.
Cooperative style:
This style basically used for employee’s participation, their involvement and discussions among
the employees. The company used this style for its young employees and for leadership
essentials. The purpose of selecting this style is to increase the interest of young potential
employees.
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c)Evaluate the TUI’s current management and leadership style links with the theories and
where possible provide evidence of organizational practice specially that encompasses use
of digital technology.
TUI present management and leadership styles are:
Management and leadership style play an important role within organization business. TUI group
focus on the hire the young potentials workforce who can operate its digital technology platform
by adopting the new and advanced technologies. In this situation, it can make efforts for hiring
the new generation and give directions to do work and accomplish the organizational goals and
objectives.
Personal leadership style, mixed leadership style, liberal leadership, corporative management
style and democratic leadership style mainly used by the TUI group. In its historical time
company use the basic leadership style called autocratic management and leadership style.
TUI management and leadership style linked with the behaviour theory of management. Personal
leadership style connected with the behaviour theory of management because this leadership
style is focused on the employee's individual needs and wants as well as focus on the employee's
behaviour. The company use this leadership style for making its employees feel independent and
take their own decisions according to their perceptions and opinions.
Behaviour theory increases the employee's self-confidence; provide directions to the employees
for self-belief. So in these situations, this leadership style directly connects with the behaviour
theory of management. It provides benefits to not only for the organization but also enhance the
employee's skills and abilities (Bolden, 2016).
Mixed leadership is linked with the group influenced theory. Mixed leadership of TUI focus on
the involvement of men's and women's both opinions, whereas company provide sustainable
support for female employees. It is evaluated that in the financial year of 2014, women's
contribution to their efforts, and it is accounted for 55.5% of their overall group team members.
In this case, it shows that the leadership style directly linked with the group influenced the theory
of management. In this type of approach, it focuses on individual thoughts; others influence
perceptions, beliefs and actions through identification, internalization and agreement.
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TUI focus on provide better services for its customers with its more efficiency. It uses digital
technology to upgrade its business and increases its productivity. Its discussions on enhancing its
management and leadership style by using of digital and advanced technologies. In the current
time, period digitalization demands are on high priority.
Organizational practices towards digital technology:
 The company focus on standardised information technology systems.
 It gives offered in as a whole and understands the customer's choices, travels preference,
requirements and desires.
 Company use block-chain, manage and maintain the world hotel capabilities with high
efficiency and transparency.
 It makes fair treatment in front of the customers. It is evaluated that the company adopt
the digital approach and work with the local partners. T
 UI group immensely support international brands. It is an analysis that big brands attract
to confidence.
On the other hand, it is challenging for the organization to hire new employees and understand
their needs and wants. It is risky for the organization because to attract to the young potential is
not easy for them. It creates issues and barriers for the managers and leaders to understand the
employee's mindset.
The company wants to lead in innovation drivers for its industrial business. It believe that digital
means provide more and more services to the customers. In this situations company adopt
effective leadership styles. This above leadership and management styles supports to the
company to use digitalization.
Evidences are:
TUI uses smart information systems and central CRM system structure for creating the advanced
values towards its customers. For fulfil, this aims company use effective management styles and
leadership, so its employees do work by focusing the organizational needs, aims and objectives.
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d)Using TUI, provide an explanation of the role of the leader and different leadership
styles.
Role of the leader:
In every organization, leaders play an important role because these people take the
responsibilities of their employees and workers. In this case, it is essential for the organization to
hire the right leaders for managing the tasks and accomplish the organizational goals and
objectives.
For organization:
There are various types of roles and responsibilities which are essential and should have in the
leaders; these mentioned below:
According to the professionals, it is said that leaders are not made by birth, but their abilities
make these people. These people requirements are essential and want for every level in the
organization. In the top-level, leaders are required for not only for the high-level but also for the
lower level of the organization.
 These people represent the organization.
 Leaders do not manage the top level but also maintain lower-level responsibilities.
 These people give directions to their co-workers and employees to fulfil their tasks by
focusing on organizational goals and objectives.
 These people represent by seminars, conferences, meetings to guide the employees to
effectively doing work.
 These people integrate personal goals and organizational goals.
 Leaders use leadership traits for fulfilling the individual purposes of the employees with
corporate objectives.
 These people try to coordinate with their team members and discuss all the aims, targets,
short term goals, as well as long term goals for achieving success. Leaders may be
mangers, professionals and a person who offers to their employees for support and
cooperate with the subordinates.
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Leaders support to their employee's workers as a friend, philosopher and a guide. Their roles are
risky because the company depends on them. These people mentor the employees and provide
guidance to the weakest employees and give directions to improve their weakness (Swanwick
and McKimm ., 2017).
Effective leadership have four qualities which provide support to the organization. These people
are credible leaders and follow character and competences. They create a clear vision for not for
own-self but also for the organization to achieve success in the future. These people use effective
strategies for better planning, growth and development. These people coach to the employees,
encourage to the weak employees to do useful work and accomplish the organizational goals and
objectives.
There are various types of leadership styles which is used by the leaders these are autocratic
style, democratic, strategic, transformational, and team leadership, cross-culture leadership,
facilitative, laissez-faire, transactional, coaching leadership, charismatic, visionary leadership.
All these leadership styles are active and adopt by the leaders according to their abilities and
capabilities.
Different leadership styles are:
Autocratic leadership:
In this type of leadership style leaders take the responsibility of the employees and high
authorities. The role of leaders is making decisions with their own-self without the support of the
subordinates. In this type of leadership, it is the work atmosphere. It is reasonable as compared to
the other leadership style. In this type of leadership directions, guidance, procedure and policies
are necessary.
Democratic leadership:
In this type of leadership, leaders make decisions by the support of sub-ordinates decisions. It is
the most and useful style and used by many companies. This leadership style is focused on
effective communication in the upward level as well as downward level (McCaffery, 2018).
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e)Conclude the first part of the report with an analysis of the management and leadership
styles in TUI.
When analysis the TUI management and leadership styles it gives two aspects which is positive
and negative.
Background:
TUI mission is to engage with its customers and provide their services in all over the world. For
fulfilling its company aims and objectives, it focuses on adopting the effective leadership style
for connecting not only with the customers but also for its employees. In this situation, the
company make an effort to provide the facilities more and more to its tourists and potential
customers.
For fulfil the organizational goals and objectives; company management and leadership styles
play a vital role. Accordingly, there are various types of management and leadership styles, but
company use some specific methods for its business. The purpose of adopting the styles is to
become more services and provides advanced services, facilities for its customers.
Discussions are:
It is an analysis that own performance style of leadership and mixed leadership used by the
company. The purpose of adopting these styles is to close the skills gaps and make active
leadership styles to reduce the risk of failure the management. Effective leadership styles help to
the company employees to do work by focusing on the organizational goals and enhance their
own skills and capabilities.
It is analysis that in the international level TUI tour and travel runs its business by high-
performance leadership styles. It focuses on top management and searches to promote strategic
thinking and upgrade the leadership skills. Individual personal performance leadership style and
the mixed leadership style are used by the company to build a strong relationship with its
employees and increase the chances of the customer’s interest.
In its arguments, it is evaluated that there are various types of positive and negative aspects of
these types of leadership styles these are mentioned below:
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