TUI Travel PLC: An Analysis of Leadership, Management, and Change

Desklib provides solved assignments and past papers to help students succeed.

INTERNATIONAL TRAVEL
ANDTOURISM LEADERSHIP AND MANAGEMENT FOR
SERVICE INDUSTRIES

Table of Contents
Introduction................................................................................................................. 3
LO1:............................................................................................................................ 4
LO2:............................................................................................................................ 8
LO3:.......................................................................................................................... 10
LO4:.......................................................................................................................... 13
Conclusion................................................................................................................ 15
Reference list............................................................................................................ 16
2

Introduction
The evolution of digital technology is not a rapid process, it needs to have the demand and
then only the service providers can make modification. It is seen that the demand of digital
technology is high in the service providing organisations. The modification of technical
factors make a significant development in the service line up and ultimately this makes a
proficient development in the system. In this context, the company that has been taken into
consideration is TUI Travel PLC. The impact of digital technology on the various core
business systems are going to be identified and suggestions of improvement will be given as
well. Headquarter of the organisation is in Crawley, England, UK. The company has major
market share in the hospitality segment. The CEO is Fredrick Joussen (Tuigroup.com,
2019).
3

LO1:
P1: Assess different classical management theories and apply these in a service
industry context
There are different types of classical management theories and some of them are Taylor's
principles of scientific management, Fayol's principles of management: Administrative theory
and many else. The theories are going to be assessed in order to make a logical deduction
of their application on the core management functionalities of TUI Travel.
Taylor's principles of scientific management
According to the scientific management theory, there are few changes required in order to
enhance the productivity and quality service of an organization. Fredric Taylor stated that the
management process is a two way system in which one has to ensure that the resource
allocation is proficient to get a noteworthy result (Waring, 2016). He said that the rule of
thumb is the best thing to be taken into consideration in order to maximize the potential. The
best thing to be done is to make sure that the person with certain capabilities is getting the
job in which he is proficient. The expertise of the person is going to provide the demanded
result that is going to make a significant change in the quality assurance process as well
(Khorasani and Almasifard, 2017). Monitoring the performance and giving direction to the
employee to make a productive outcome of it is a necessary factor to be taken into
consideration.
Figure 1: Taylor’s Scientific Management
(Source: Toppr-guides, 2018)
The work needs to be planned first and for that reason, the managers and the employees
both should have access to the work. The managers will make decisions and consider
4

certain management rules in order to make a productive change to the entire system. The
planning of work is necessary to initiate something.
Fayol's principles of management: Administrative theory
Fayrol stated that the management of a system can be divided into fourteen activities and
this is the best thing to be considered. Some of them are given below in order to understand
properly. The Division of work needs to be done efficiently to make sure that the
employees are becoming skilled and growing (Edwards, 2018). The authority is the main
controlling party but they have to be aware of the issues that might be faced by them in
future. The Discipline factor needs to be managed significantly and it is highly necessary to
ensure a proficient and productive growth by ensuring a static culture. Command giving is a
necessary factor as well where the employees have to be supervised. On the other hand the
Direction factor is a necessary factor too because this is going to help in making a proper
and proficient communication. Subordination of Individual Interests to the General
Interest should be managed properly and the group has to be prioritised in order to have
better communication and coordination (Khorasani and Almasifard, 2017). The
Remuneration needs to be adequate to make the employees motivated. With a Centralised
process the employees have to be kept closer to the decision making process. Scalar chain
process will help an employee to understand the position he acquires. Order of the
workplace needs to be hygienic and Equity is going to ensure that the managers are well
behaved to the employees (Hatchuel and Segrestin, 2018). There should be a proper
Tenure so that everyone gets and opportunity. The employees have to be provided with
proper freedom to ensure new Initiative for betterment. The organisations need to promote
Esprit de Corps culture to ensure proper team spirit.
From the given detail, it can be stated that TUI Travel needs to ensure that these have been
applied to the communication, promotion, administration and in other segments of the
services in order to make proper and proficient change in the system. Both theories have
different appeal and to get delicate changes it is necessary to adhere the Administrative
theory.
P2 Explain the role of the leader and different leadership styles in a service sector
industry context
There are different types of leadership styles and the role of each leader and approach is
different. The leadership styles are Autocratic leadership, Democratic leadership,
Transformational leadership and many others.
Autocratic Leadership- the style is being too much oppressive. The business management
process needs to have a system of approach like this in the beginning phase if the entire
5

system is newly build (De Hoogh et al., 2015). For better understanding, the issues need to
be managed in a specific manner in order to have better kind of service rate. The TUI Travel
needs to make sure that they are making a significant impact on the business management
process in order to make a proficient change in the system. The business needs to be
developed and then managed in order to ensure a productive and dominant change. This is
for the lower level of service line ups.
Democratic leadership- The leadership style is going to ensure that the leaders are making
decisions with participation of the employees and they are considering the opinion of others
as well. The team members have to be highly skilled in order to give suggestions to the
business management process. The leader of TUI have to make sure that their process of
having the opinion of the employees is giving the employees the required flexibility and time
too, so that the best suggestions can be derived (Iqbal et al., 2015). The best option for them
is to ensure that the people have gone through the requirement of the situation and then
giving a proper and proficient suggestion. The main role is to ensure a dominant change in
the system to have a better kind of situation for the service providers.
Transformational leadership- better and effective communication and thrive of
improvement is something necessary to be taken into consideration and in the long run this
will ensure a good amount of change in the system (Hoch et al., 2018). The leader has to
ensure that the goals are set high and they have been fulfilled properly. There should be an
effective communication system to make some significant change in the decision making line
up. TUI Travel needs to have this type of leadership too in the employee management
segment and especially in the HR management system.
For a better approach, it is necessary to ensure a proficiently productive growth to the entire
system. The best option is to have Transformational leadership so that new aspects of
quality assured services can be derived.
P3 Review the management and leadership styles in a specific service sector
organisation
The service sector that has been considered is hospitality segment and the company that
has been selected is TUI Travel. There are different types of management skills and in this
segment the best options for TUI has been stated below.
Autocratic style
The business management process needs to be managed in a significant manner and the
autocratic managers take control of all the matters. No inputs from the subordinates are
6

taken to decide and the decision is imposed on them. The business management process is
going to ensure a proficient and productive growth if everything is managed properly
(Mohiuddin, 2017). It is important to be considered where time related constraints are
present dominantly.
In case of TUI if there is any issue related with the time factors, then the best thing to be
done is making sure that the issues are being catered in a proficient manner and they are
making a proper kind of technical implementation to ensure a productive growth. The
customer care manager needs to make sure that they are taking care of all the aspects in a
proficient manner in order to have better approach strategies.
Persuasive style
The persuasive management style is related with proper kind of business development
prospects and it is necessary to ensure that people are being abided by the comments. The
management takes some help and suggestions from the people who work under them but
only from the experienced ones. The decisions taken by them are going to have some
impact on the business management process (Cano-Basave and He, 2016). The main
decision makers are the higher management. The employees have to have a good
connection with the management to give suggestions. This is a major factor to consider for
having better results.
For the organisation TUI Travel, the best option to consider is the persuasive style because
there is a high need of having a good kind of communication with the employees and the
management so that proper services can be provided to them. The connection is important
to have and in the long run this is going to ensure a proficient and productive change in the
business development. The connection of employees and the managers is an important
thing to have and in the long run this is going to have better and productive results because
the communication will help the organisations to flourish in a highly competitive market
(Dixon et al., 2015).
7

LO2:
P4 Investigate the internal and external factors that influence management styles and
structures in a selected service industry organisation
Internal factors influencing management style
The internal factors that are associated with the changing the management styles are
Financial factor- The financial aspects associated with the business development process
is considered important. The most of the cases it is seen that the financial factors help in
making a significant data analysis in order to make changes (Jörg and Sandra, 2016). The
management takes decisions regarding resource allocation and brand management. It is
seen that the issues associated with the process of situation management is related with the
financial stability of the organisation. In some cases, TUI has to consider the autocratic
styles in order to enhance the profitability and revenue.
Organisational technical factors- the organisational technical factors are important to be
taken into consideration. The management needs to ensure that the technical prospects of
the organisation are higher than the rest in order to have an upper hand (Klimoski, 2016).
The most of the times it is seen that issues associated with proficient brand management is
related with the demand in the work culture and that can be managed with proper technical
remodelling. TUI management has to make sure that they are considering the best technical
helps in order to make proper and proficient change in the system. For better understanding
a participative approach will be beneficial for any organisation like TUI Travel to have better
results.
External factors influencing management style
The external factors related to decisions making are given in the following segment.
Market economy
The market economy of UK is an essential element to be considered. It is seen that the
economy is going to have a better situation if the entire process of work is in a functional
state. It is seen that the management process is going to have a better kind of service line
up which will help in making a significant change in the business settlement process
(Lazonick, 2017). The market economy often instigates one leader or manager to take
decisions that are not associated with the process of business management previously. The
recent modifications in the economic ambience are an important aspect to consider which
often hampers the financial returns of TUI and the management takes relevant decisions.
Political factors
8

The organisations often get hampered by the decision of the political parties and a sudden
political turnover is a necessary aspect to be taken into consideration. The political parties of
ten change the trade policies and that affect the organisations in a positive or negative
manner (Petrosjan et al., 2018). This is the reason why the TUI group has to think of the
political factors in order to make significant change in the system. The management have to
take transactional style so that the external turmoil does not hamper the performance.
9

LO3:
P5 Asses current management and leadership ‘hard’ and soft’ skills providing
evidence from specific service sector examples
Hard skills of current leadership and management
Empathy
It has been observed that leaders try their level best to understand other views in order to
keep them updated about recent issues that employees are facing in their working areas. As
asserted by Chiu et al. (2017), leaders understand the body language of each staffs and
takes personal interest to solve their employees issues so that they can keep their
employees all time motivated. Furthermore, it has been noticed that leaders create a bond of
trust with all employees and it raises communication level between leaders and employees.
For instance, leaders of TUI Travel Plc always understand body language of employees and
tales necessary steps in order to decrease chance of conflicts in the internal areas.
In case of managers, empathy allows them to relate thoughts of employees with
organisational objective in order to decrease conflicts in their internal areas. For example, in
TUI Travel Plc, managers before preparing any kind of objectives, takes feedback from
employees to get a vivid view about their internal factor so that they can modify their strategy
precisely. Moreover, Kiron et al. (2016) comment that managers perform emotional
intelligence in order to connect their employees with affection and it creates a positive effect
on diverse viewpoints. It has been observed that managers of the concerned tourism
organisation also take their employees views in order to manage their current business
issues after implementing new strategy. Therefore, it can be said that they follows emotional
empathy in the organisation.
Etiquette
Leaders show proper etiquette in front of their employees in order to increase their
psychological bonds with all their employees. According to Shin et al. (2015), successful
leaders all time show respect to employees and they treats each employee with dignity in
order to increase the rate of team dynamics rate. For instance, it has been found that
leaders of the TUI Travel Plc prepared a chart based on every employee’s activity in their
work premises in order to provide them guidance as per their requirements.
Managers all time shows professional appearance in front of employees and makes their
employees’ feel comfortable to discuss their issues in front of them and it creates a positive
impact on organisational culture (Thornton et al., 2017). Managers of TUI Travel Plc always
show kind and polite attitude in front of their staffs in order to decrease the chance of
interaction error between junior and senior officials. Therefore, it can be easily mentioned
that managers in the service sector maintained a corporate culture.
10

Soft skills of current leadership and management
Problem solving capabilities
Leaders act as clear thinker and prepares different conceptual framework in order to
manage their business procedure effectively (Kane et al., 2015). For instance, leaders of the
TUI Travel Plc often prepares different activities for employees in their working areas in
order to raise their thinking ability and it improves service quality of organisation. Moreover,
leaders discuss with managers about new service procedure and its features to enhance
unique features in their business and it attracts more customers from the global market.
In case of managers, they firstly examine the whole situation to become clear about the
present issues and they prepare right solution against each issue to increase their
conductivity level (Ardichvili et al., 2016). For example, managers of the concerned service
industry prepare risk management to manage complex issues of their business effectively.
Motivation
As per viewpoint of Al-Haddad and Kotnour (2015), motivation deals with goal oriented
characteristics’ so that they can manage their business factor. It has been noticed that
leaders of TUI Travel Plc often set targets in front of employees’ so that they can achieve it
within right time and it improves performance level of organisation.
Managers in order to improve motivational level of employees provide constructive feedback
to each worker to improve confidence level of employees. For example, it is found that
managers of TUI Travel Plc follow all activity of staffs and provides certificate to employees
for their outstanding service in order to keep their staffs’ motivated. Extra incentives are
given to employees based on their extra works and it gives emotional satisfaction to their
employees.
Patience
Managers of the enterprise all time keep high patience in order to manage complex situation
of organisation in a fruitful way (Oreg et al., 2018).TUI Travel Plc’s manager takes feedback
of employees and leaders and they set tasks and target for each employee so that they can
manage it without any hindrance.
Leaders also have high patience in their working areas and it guides the organisation to
utilise perfect business opportunity. This business opportunity allows Travel Plc to increase
their competitive advantage and it guides the enterprise to manage their business
sustainability rate.
P6 Discuss future management and leadership skills required by the service sector
and how these can be achieved
Technology advancement guides both leaders and managers to create digital strategy in
their service in order to reduce gap between their service users’ perception and employees
demand. Carayannis et al. (2015) opine that managers will need to improve their knowledge
11

based on digital technology so that they can utilise it in their data management, skill and
career development strategy. On the other hand, Mone and London (2018) argue that
leaders need to implement new operating systems so that they can manage their business
procedure perfectly. It has been noticed in the TUI Travel Plc that leaders need to focus on
soft skills assessment so that they can develop employees’ skill and henceforth, it will allow
their employees to solve service error by using emerging technological tools. Therefore, it
can be easily analysed that involvement of digital technology in the service sector guides
leaders and managers to become more sensitive about their business error and it creates a
positive impact on its standard service.
According to Little et al. (2016), digital world brings business transparency; however,
managers of service sector are worried about company’s security and privacy factor. In case
of the TUI Travel Plc, it has been found that leaders have high patience, communication
skills and problem solving attitude and implementation of digital technology will increase
psychological understanding between them. On the other hand, managers of the selected
service sector also show empathy, have problem solving capability and maintain high
corporate culture in order to decrease conflicts from the enterprise. Henceforth, it can be
said that managers and leaders of the enterprise tries their level best to implement modern
technology tools in order to keep them updated about every activities of employees and
therefore, it can decrease the chance of negative effect of politics.
Modern technology will guide leaders to focus on their ROWE (Results only work practices)
so that they can manage their business issues effectively. In order to increase functional
ability of managers, they need to concentrate on input and output in order to determine their
current business status. On the other hand, Ardichvili et al. (2016) argue that leaders has
implemented automated tools in their workforce to complete the tasks within right deadline
and it will raise team dynamics rate in internal areas. Henceforth, it is identified that
automated tools set perfect target in front of employees and leaders can easily enhance their
monitoring approach that can maximise flexibility rate in the organisation. In case of
managers, this digital technology will guide them to manage their conflict as it will aid them
to examine situation within short time.
12