TUI Group: Leadership and Management in the Service Industry Report

This report provides a comprehensive analysis of leadership and management practices within TUI, a major player in the tourism industry. It begins by exploring classical management theories and their application to TUI, including scientific and bureaucratic approaches. The report then delves into the roles of leaders, examining different leadership styles such as autocratic, democratic, and laissez-faire, and their respective impacts on employee motivation and organizational outcomes. Furthermore, it investigates the internal and external factors influencing TUI's management styles and structures, considering leadership, internal relationships, and digital technology. The report also addresses current and future skills required for effective leadership within TUI, emphasizing the importance of digital literacy and innovative thinking. Finally, it compares change management systems and leadership approaches across different service industries, offering insights into how TUI can adapt to the changing market dynamics and improve its management strategies. The report highlights the importance of democratic leadership and employee empowerment in fostering innovation and achieving organizational goals.

Leadership and Management
for Service Industries

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Classical management theories...............................................................................................1
P2 Roles of the leader and different leadership styles:................................................................3
P3 Management and Leadership style in a service sector organization.......................................4
LO 2.................................................................................................................................................5
P4 Internal and External factors that influence management styles and structures in TUI.........5
LO 3 ................................................................................................................................................7
P5 Current management and leadership related hard and soft skills for TUI..............................7
P6 Future management and leadership skills required by TUI....................................................8
LO 4...............................................................................................................................................10
P7 Comparison of different service industry organization change management system and
leadership in implementing change...........................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Leadership and management play significant role in service sector, it includes ability of
leaders and managers to lead and manage the employees and work effectively by motivating
there employees to work hard so that production can increase and organization can achieve its
goals. TUI group operates in tourism industry in German founded in 1923 headquartered in
Hanover. The company is largest among travel and tourism industry and owns travel agencies,
hotels, airlines etc. Current CEO is Mr. Friedrich Joussen and in 2018 company generated
1,952.39 crores EUR. The study will highlight classical management theories and will apply it
on TUI. Further the report explains the role of leader in service industry and different leadership
styles in TUI. Report also includes various factors that impact on structuring of TUI. There are
different hard skills and soft skills of leaders which affect management of TUI and there are
various skills which may be required by leaders in future for good management. At last
comparison of different service industry for changing managing systems and leadership is
explained in the given report (Campbell, Jardine and McGlynn, 2016).
LO 1
P1 Classical management theories
Classical management theory are emerges from the industrial revaluation in private as
well in public sectors. Inside these the industries were looking for the ways of improvement in
efficiency and productivity in the organisation. Thus, theory of classical management were born.
Scientific management: Scientific management theory was formulated in the early 20th
century by F.W. Taylor. It is the important theory because the approach in this theory are
adopted in worldwide. It influences organisation practices such as cost accounting, planning,
quality control and process design. Taylor elaborates scientific management as the knowledge of
exactly what an industry wants and evaluate the best way to do in the cheapest way(Campbell,
Jardine and McGlynn, 2016).
Principles of scientific management:
 Science, not rule of thumb: It is the basic principle of scientific management which
means the application of traditional method or the method selected by the manager of
TUI services industry on the base of the experience. All these methods are unscientific
and do not provide guarantee of specific outcome, In this principle Taylor has highlighted
“trail and error method'' or “hit and miss method” (Gibson and Parkman, 2018). It
1

explains that companies should continuously make trial and accordingly have to identify
errors and have to resolve it.
 Training of workers: this principle of scientific management states that the TUI group
should select the employees and then train, teach and develop the employees instead of
they choose their own work and trained themselves (Kivipõld, 2015).
 Cooperate with the employees: Taylor states that the industry management should
cooperate with the workers to ensue that the importantly formulated methods are being
followed(Kao and et.al., 2015).
 Division of labour: This principle states that their should be equally division of work
among the staff and mangers, applying this principle to planning the work and employees
actually perform the given tasks (Ma, Shek and Li, 2016)..
Bureaucratic approach: Bureaucratic theory of Max Weber, is design to ensure the
economic effectiveness and efficiency in the organisation. It is an ideal model to bring the
industry's power structure into focus. There are some principles regarding the theory which
emphasis on the hierarchy, rules and relationships in the organisations.
 Hierarchical of authority: According to this principle, managers are responsible to create
and manage the hierarchical layers in the organisation. Where each layer of management
is responsible for the employee's performance. In this authorities make decisions and they
have right to give instruction to all workers and all staff have to ensure that they follow
their instruction. In TUI hierarchical layers are managed according to this principle bye
which management can delegate the authority and responsibility in the manner(Kivipõld,
2015).
 Specialisation: In this principle, task are divided into simple categories on the basis of
function. Through split-ion of task on the basis of specialisation the organisation is
directly benefited because every worker is responsible for their work and doing exactly
form what is expected (Ma, Shek and Li, 2016).
 Career orientation: In a bureaucracy firms all the employees were selected on their
expertise basis, which leads to help workers to develop their skills and it results better
utilisation of the human resources. TUI also allows the workers of their business to
specialise themselves, so they may become expert in their own work zone and improve
their performance(Manz and et.al., 2015).
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 Rules and regulations: Rules and regulations are required to assure regularity, so the
workers know what exactly expected form them.
P2 Roles of the leader and different leadership styles:
Leadership style is an approach by which a leader provides motivation and direction for
implementation of plans to their subordinates. It is a total of implicit and explicit action which is
performed by leader. Leadership is the activity or action of leading employees in the organisation
to achieve organisational goals (Kivipõld, 2015).
Autocratic leadership: This type of leadership style are to be used when leaders tell
their subordinates that what they have to done and how it should be accomplished without taking
advice of their followers. In autocratic leadership style leader were makes almost decisions
regrading work, and team member are rarely trusted in such leadership style for making any
important decisions or task. In TUI group if such kind of leadership style were adopted then it
results that clear chain of command is oversight. But it may ignore the creative sight of the
subordinates and discourage the inputs of the group(Klafke and et.al., 2016).
Apart from being an effective leader it may also be the effective time manager. If a
leader always engaged in the problem solving term or fielding complaints, it seems like a leader
is not delegate the authority properly or not empowering the team members. Leader should be
creates an action steps towards the improvement (Manz and et.al., 2015)..
Democratic leadership: It is also known as the participative leadership style or shared
leadership, it is the type of leadership in which the group members are participates in the
decision making process. Such kind of leadership can apply in any organisation. In such style
team members are to be encouraged for share their own ideas and reviews to making the final
decision. It results, subordinates are feeling motivated and engaged into the process. If service
industry like TUI Groups are adapting such leadership styles in the organisation than it leads to
high productivity in organisation and firm has more ideas to doing the work with a creative
solution. But it also has some drawbacks like if a team is unskilled, decisions are could be poor
(Manz and et.al., 2015)..
Motivating an employee is the one of the basic role of the good leader. If a leader
communicate with their subordinate out their needs and wants, it will motivate them to improve
their work in effective manner and make them feels more encouraged(Ma, Shek and Li, 2016).
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Delegative or Laissez-fair leadership: The laissez-fair leadership style is refers to the
those leaders who assigns the project to their subordinates and free them to work. In such kind of
leadership styles there is very little guidance provided by the leader and employees were
responsible for their decisions. Leader are provided the tools and all the resources which are
needed for the project and all the authority are handed over the subordinates, yet leader is still
responsible for the actions and decisions. If TUI group is adapted such styles, it makes the team
creative but also it causes poor results or outcome because lack of knowledge. In this leadership
it seems like the leader may uninvolved. It can work only when work for motivated team or with
high level of experience and skills(Manz and et.al., 2015).
A good leader has to set clear vision which means to persuade the workers for understand
and accept the state of firm in the future. A great leader can persuade the employee's to perform
their work in effective and efficient manner by explaining them their roles and responsibility in
the outcomes (Kivipõld, 2015)..
P3 Management and Leadership style in a service sector organization
Leaders of TUI should apply democratic leadership style in the organization as the
employees will be free to express there opinion in front of the team. They will always come up
with new ideas which will direct the organization towards the goal. When employees are free to
make decision they will always come up with new solutions to solve the problems coming in
front of there progress. TUI uses digital technology, if leaders will make decision then innovative
ideas will be lacking in the organization and TUI can not compete with just old strategies
because there is tough competition in market.. Employees will learn how to manage the time and
will learn to work in team. They will be satisfied with the work they are doing as there will be no
pressure and they are independent for making good decision(Kivipõld, 2015). Leaders role is to
work with employees to get innovative ideas for bring new scope for the business and increase
production level of the TUI. Skills are enhanced and utilized by employees in right direction,
leaders guide employees about entire process and check their work. This will help them out as
they will not lose hope and will again try to work out for supporting the business of TUI (Manz
and et.al., 2015).
If TUI want to compete in market they have to work on digital technology. This can be
implemented by motivating there employees to come up with new ideas to develop such
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technology which can help the organization to bring new scope for the firm and can lead the
organization. For the same leaders have to make there employees free to take any decision
according to there innovative mind and leaders should also provide resources to the employees
which they can use to develop the digital technology in the organization. When this leadership
style is implemented results will be positive as every organization search for new scope in
market and TUI will be getting new opportunity from the potential customers. There are various
social changes because of which employees feel that they should be set free to make there
decision and apply their own ideas towards the organization growth(Kivipõld, 2015).
LO 2
P4 Internal and External factors that influence management styles and structures in TUI
There are various internal and external factors which are influencing management styles
and structures in TUI. These factors directly and indirectly affect organizations work culture.
Internal factors are as follows:-
 Leadership:- Leaders of the organization are its back bone which inspire there
employees to work in a particular direction to achieve its goals. Basically leaders of TUI
work on good communication so that each and every individual working in the
organization can understand what task they have to perform to bring business in there
hand. Leaders ensure that all employees are happy, they guide them well so that they
perform well (Gibson and Parkman, 2018).
 Internal relationship: - it is essential that all employees or employers have strong
bonding, this helps in making effective coordination. If there is no effective bonding then
leaders have to make changes in their style so that relationship can be build up and all
employees can talk to leader easily. this also influence structure because people fails to
coordinate well in the absence of good structure hence flat structure will enhance their
communication. Every service industry including TUI is working on communication
practices so that team leaders can set a work environment where every individual
member of the team can freely deliver their ideas for better performance of the team.
There are chances that if communication between top to bottom level structure of TUI is
not good then trust issues may arise (Manz and et.al., 2015).
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 Mission:- TUI basically focuses on its mission as it clear out for what purpose
organization is working for. The mission of TUI help in reaching the goals and making
there customers and employees satisfied(Kao and et.al., 2015).
 Learning:- Learning about new technology or ideas is very important for an
organization. Nowadays TUI is focusing on digital technologies coming in market. For
becoming a successful organization and keeping its position in market TUI is coming
with different digital solutions so that it can compete to other service industries. Learning
and then using it for some innovation can help in bringing new opportunity for the
firm(Kivipõld, 2015).
 Culture: If there is poor culture then leaders will have to make changes in their style ad
have to create healthy workplace culture where all the staff member can work together
and share their feeling. It also influences firm’s structure because it minimizing
communication gap and all level of authorities become able to coordinate with lower
level workers easily.
 Employee engagement: poor engagement impact on entity performance hence leaders
have to make changes in their style so that all the workers share their views and they
work better or support leaders. Poor engagement impact negative on structure.
External factors are as follows:-
◦ Competition is the major external factor that impact on leadership style and structure,
if there is high competition then leaders have to make changes in its style of way of
leading people so that employee improve their performance and enterprise can meet
the standard or can gain competitive advantage (Klafke and et.al., 2016).
 Digital creation is another factor due to which leaders have make changes in their leading
style so that people start working on new techniques easily (Ma, Shek and Li, 2016).uses
of email system, social networking help leader in making better coordination which
automatically improves their relationship with others.
 Diverse talent: if there are large number of employees and they all are belong from
different culture then leaders have to make changes in their leadership style so that it can
make connection with all workers easily and can minimize language barriers by making
healthy relationship with them. If diverse range of employees work in business, then
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entity has to make its structure in such manner so that proper communication can held
and coordination barriers can be minimized.
LO 3
P5 Current management and leadership related hard and soft skills for TUI
Both hard skills and soft skills are important for a leader to manage the business
environment. Hard skills of leaders are measurable and can be taught whereas soft skills cannot
be quantified or taught. Hard skills are such skill that can be improved by getting education or
training whereas soft skills are inbuilt. The hard skills and soft skills require for good
management and leadership are follows:-
Hard Skills:-
 Proficiency in a foreign language:- Many a times company is not able to connect with
potential customers due to language issues. TUI search for leaders who are fluent in other
foreign language like German, Chinese etc. so that customers are able to get connected
for the service and TUI can take the business to the international market (Manz and et.al.,
2015). Digital technology evolvement makes it necessary for the person to have good
knowledge or command over foreign so that individual can work in differentiation easily
and can deal with different person in the firm effectively.
 Planning skills:- The most important hard skill for becoming good leader and managing
the workforce is planning. TUI is having leaders who can analyze the business and
accordingly can plan for generating huge sale for the business. For the same they are
planning to come up with new digital technology so that they can attract new customers
for giving services (Kivipõld, 2015). Digital technology evolvement makes it essential
for person to have good planning skill so that individual can coordinate with others with
proper planning and can complete their work by using such technologies easily.
 Research:- To compete in market it is essential for a leader to do time to time research
and accordingly modify the technology. Leaders of the TUI are doing research and
development on digital technology so that they are able to compete with there
rivalry(Mesu, Sanders and Riemsdijk, 2015).
 Data Analysis:- It is essential for the leaders of TUI to analyses the data as it is resource
for the service firm to extract there potential customers to run the business.
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Soft Skills:-
 Communication:- Ideas are clear when an effective communication is going on in the
organization. Leaders of TUI for a successful business have to create an environment
where all are free to share there ideas and openly express there views in team(Psomas,
and Jaca, 2016). It is essential for future organization because it makes the person able to
convey their message to others easily and gain the higher position. It can be developed
by attending seminars, workshops etc.
 Team work:- It is job of a leader to work on every individuals' strength and weaknesses
and utilize them to achieve TUI's goals. For the same leaders can provide training to the
team members so that they are able to enhance their skills towards the task performance
(Kivipõld, 2015). It is important for person to build team working capabilities because
when a person reach to top managerial position then individual has to handle big team
which cannot be possible by having skills of team working. This can be developed by
getting senior guidance and reading books on same topic.
 Problem solving:- For becoming a good leader problem solving skills are necessary
which help the business to find solution of different issues coming towards the
organization. Leaders of TUI have analyzed competitive advantage coming towards the
business and have come up with the solution by implementing digital technology in the
organization(Campbell, Jardine and McGlynn, 2016). It is important for individual to
have good problem solving skill, in such condition individual will be able to solve
complex issues easily and individual can improve this skill by reading previous business
case studies and by joining seminars (Ross, 2017).
P6 Future management and leadership skills required by TUI
The specific digital technology change at TUI is process change which includes change which
starts from inception to delivery, the meaning of which is to make process more efficient and
effective. Change in process also means transformation which can be seen due to change in
technology in which social media like Facebook, Twitter and Instagram have completely
changed the way the travelers do research. For example in TUI is offering luxurious room,
hygienic food, swimming pool etc. but not having good reviews on website then it will make the
room completely clumsy. So it is the power of digital technology. The leadership style known as
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Transformation leadership is used to make changes according to change which is prevalent in the
market and which is of digital technology and this can be done by letting review the customer at
time when the customers are there in the hotel on Facebook and also on website, this will help
the hotel to gain popularity. According to Transformation leadership a leader must motivate the
employees of the organization to make changes in the organization. This will hone competitive
skills and make TUI more compatible. For example if the nearest competitor of TUI has changed
the working style and focusing more on digital tools, then the TUI must also change the work
style by going digital which may hotel booking online, fund transferring and payment online,
making of website online and adding blogs and creative photos. Kotter's model will support this
change by creating the urgency sense, Guiding coalition, Creating a vision which include the
changing benefits over the competition and achieving things in time frame which is
implementation of digital technology within a specified time and also communication of the
vision and this can be achieved by communicating the vision to the employees of TUI.
There are many skills which may be required by leaders as well as management of TUI to
achieve future goals of the organization. These skills are as follows:-
 Emotional intelligence:- In upcoming years leaders have to enhance there emotional
intelligence as it will be very important to understand and manage emotional intelligence.
By knowing how one can be motivated, leaders can communicate and manage the whole
team and there work performance. This will help the organization to build a good
working environment and achieve there goals(Shek, Chung and Leung, 2015).
 High in Confidence:- In near future employees will follow only those leaders who are
confident on there ideas. It is tough to convince the employees about new concepts
coming in the market and as the generation is running very fast implementation of new
ideas are also very important to compete in market. So leaders have to be confident
enough on there ideas to get them implemented with help of the employees. TUI's leaders
presently working on digital technology and if they are not having confidence on this new
technology they would not be able to implement it in near future (Gibson and Parkman,
2018).
 Work ethic:- Leaders have to ensure they follow business ethics carefully.. This will
motivate the people working in TUI to follow the right path to achieve the output on
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time.. This will also increase moral value of TUI and will create an ethical working
environment where people can be trustedKao and et.al., 2015).
 Lateral thinking:- Leaders in future have to think differently in order to create new ideas
which have never been thought out or implemented in a work environment. For the same
new technology have to be designed. TUI is working on digital technology so that in near
future they can compete in market. There research and development is based on digital
technology only. Creativity is the most important resource for an organization. If TUI
have to progress among Tourism industry then need to work on innovation and
implement it by coming up with innovative service style in market(Kivipõld, 2015).
LO 4
P7 Comparison of different service industry organization change management system and
leadership in implementing change
Changed has an omnipotent impact on every outlook of people's lives. It has influence the
way through people connect to each other. Such as daily affairs with changed aspects of
technology. And how to do business in more innovative way. For example Technology is also
known as the driving force behind the new style of leadership, management as well as the
organization(Klafke and et.al., 2016).
BASIS TUI THOMAS COOK
Change in technology
 Leadership- it provides
the flexibility to the
employees as different
software solutions
which allows the
employees to work in a
real time with secure
environment(Ma, Shek
and Li, 2016). Work
from home ,find
convenient and also
Leadership-Thomas cook use
different automatic translation
tools for all the languages. As
it minimizes the problem of
the speaking different
languages(Manz and et.al.,
2015).
Management- Technology
manage people and project
anywhere as software suites
installed in all the
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enhance more
productivity, as they
have enough time to
mange their personal
life and professional
life and happy
employees can work
more efficiently and
also makes them loyal
towards the
organization.
 Organization- change in
technology increases
the efficiency of the
product of the and
there is an increase in
the outputted as change
in technology makes
the product more
innovate like new
buses which also have
bio matrix so that the
there is no need of
maintain the record of
employees that who is
preset while traveling
and who is not. As bio
matrix reduce the time
consuming and
increase the
productivity of the
devices(desktop, laptop).
Director and mangers of the
Thomas cook approves
budgets, hold meetings and
also endorse decisions. They
can solve so many critical
issues.
Organization- Today social
media is the strongest tool for
marketing and branding of the
product. Thomas cook used
sites as Facebook, twitter for
the advertisement of the
product so that the people are
more aware about the product
and services offered by
Thomas cook(Mesu, Sanders
and Riemsdijk, 2015).
11

company.
 Management system-
HR, administration are
the major pillars for any
organization. It is a
crucial process down
with the perfection and
error free manner. Such
as attendance
maintenance and salary
calculation also the net
income calculation
done through automatic
command based
process. New
technology makes the
employees' induction,
training and also
managing human
resource files more
smoothly and gently
with the help of the
new and dedicated
software. Here each
and every employees
monitor their own
progress, learning path
and also fill the peer
review form with
minimum time
consuming and
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efforts(Psomas, and
Jaca, 2016).
Change in political factors
 Leadership-company
earlier uses autocratic
leadership style here
the leader only focused
on the results and
efficiency but through
this new and innovative
ideas are not get by the
company and then they
adopted the democratic
leadership style where
they get the employee
feedback so now they
get the new and
innovative ideas for the
benefits of the
company(Shek, Chung
and Leung, 2015).
 Organization- company
faced the issues
regarding to tax issues
as Govt. increases the
taxes due to this fewer
consumers visit due to
highly tax duties.
 Management- they have
to change their
strategies, train and
motivate employees so
 Leadership- here the
company uses the
autocratic style but after
sometime it uses coach
leadership styles as it
easily recognize team
members' strength,
weakness and also
motivates them and focus
on the individual growth
as well.
 Organization- company
faced many issues related
due to political reasons
like the number of people
visiting the united
kingdom is less due to
Brexit.
 Management- They can
motivate the employees
and also change some
strategies for the new
policies(Ross, 2017).
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that change can be
implemented(Klafke
and et.al., 2016).
CONCLUSION
The above study concluded that there are classical management theories which are applicable on
TUI and help the industry for proper business management. The report also concluded that the
role of leader in service industry is very important and different leadership styles affect working
environment of TUI. There are many factors that influence management styles and structure of
TUI, they influence the leaders to work more effectively towards the growth of the organization.
There are different hard skills and soft skills of leaders which affect management of TUI and
there are various skills which may be required by leaders in future for good management
practices bringing scope for the business. At last report concludes on comparison of different
service industry for changing managing systems and leadership as these changes can help the
organization to develop in right direction.
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ONLINE
External factors: PEST analysis.2019.[ONLINE]. Available.
Through<https://www.managementstudyhq.com/external-factors-affect-business-
environment.html>
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