BSS057-6 Corporate Innovation and Entrepreneurship Assignment Sample

Subject Code : BSS057-6
Subject Name : Management

Introduction

TUI Travel and Group is a company leading in the travel and hotel industry with its presence in over 40 years of experience in the industry. TUI group company which was created in 2007 merged its business to become the TUI group. The company has a presence in 70 countries in terms of industrial business operations. The company has managed to acquire some of the big European tourism companies like Thomson, Fritidresor and Nouvelles Frontieres among others. The company remains one of the leading tourism groups in the world with very strong operations in travel agencies and leading online portals. The company has over 1600 travel agencies, and 150 aircraft which are operating daily. The company has 5 tour operating airlines and flies around 30 million customers annually. The company is also having over 400 hotels with 16 cruise ships that are moving around the globe to various holiday destinations. The company has an entire tourism value chain under one roof. The integrated tourism culture has made its employees experience ambience with the numbers soaring to 27 million customers in 180 regions. The company is also a listed company at the FTSE 250 index at the Frankfurt Stock Exchange which is also being regulated by the Hanover stock exchange. The company has a vision of being the leading tourism company taking responsibility and providing their clients with an executive diverse tourism presence.

The company is also becoming increasingly innovative due to challenges such as those observed in their COVID-19 and hence the company’s need to change and remain a corporate cultural organization with global responsibility. Some of the areas where innovation has to be created are included in flight organization, baggage handling, control of staff safety, and the shortages in staff skills.

Critical Analysis Integration of Theory and Practice

Leadership management remains one of the fundamental functions of any business in the industry. TUI is a very huge industry in the tourism sector and must manage its business functions and motivate its employees. Leadership, therefore, remains a guiding position with the ability of the organization to lead its employees to achieve their goals (Bolino & Turnley, 2019). With such large multinational organizations management remains the main business activity. It is also important for these business activities to be able to manage their goals. One of the importance of leadership is to provide travel and tour services while emphasizing a good management style. Currently what is being observed at the Tourism Union International is the classical management theory, leadership and management style and the classical management leadership theory in place.

The classical management theory applies to the economic needs of the employees who play a vital role in achieving the organization’s objectives. This is also considered a part of the management theory that is involved in the basic needs of the employees. Within TUI leaders have focused on different classical management theories. One of those theories is the current management theory and the administrative theory. This theory was developed by Henry Fayol and it is considered one of the greatest management theories ever (Bedi, Alpaslan, & Green, 2019).. This theory argues that all business activities are very important for the company. TUI company also understands that every kind of business operation is very important for their survival in this competitive era. Managers have ensured that they spread out their business plans to apply new technology so that they can increase the number of employees (Eisenbeiss, 2019). This theory has helped in improving the efficiency of management so that processes have become standardized within the organization. This has pushed the organization and not higher leading to operations being individualized where employees can learn and adapt to changes as the organization moves towards new heights (Bonett, 2020). The administrative theory is applied in the daily administration of routines and activities making the company smoothly achieve its goals and objectives. This theory also emphasizes on the efficiency of employees to work at a level with management, therefore, improving the efficiency of other workers.

The other theory that has been employed by the company is the future management theory. Under this theory, the bureaucratic theory serves as the main competent that systematically forms any organization leading to efficiency and effectiveness with all business activities (Eysenck, Derakshan, Santos, & Calvo, 2018). The bureaucratic management theory argues that it is possible to navigate changes and difficulties as they occur. The company has used this theory to navigate through the difficulties that have been brought about by the recent COVID-19 pandemic. This theory is also being used to help recover during disasters. The bureaucratic theory has been well integrated as a sustainable management process, especially as a disaster recovery plan. The theory is therefore increasing efficiency and economic effectiveness within the group because of the ability to attract and adapt to new technology.

The culture at the company is that of trust and passion which has enabled the company’s performance to remain very high. The leadership structure in the company is made of the VIBE Model (Deery, Rayton, Walsh, & Kinnie, 2019). At the top of the acronym VIBE is the word vision which defines the company strategy followed by inspiration which is creating the accountability of all the employees with the vision strategy and value. Under the leadership, different leadership profiles are coupled with a vision focusing on people while providing the needful in times of change. The B in the model stands for building teams. Teamwork is a very strong component of the company’s success (Hayes, 2018).. Employees need to make the right positions while the E in the acronym stands for execution. Employees need to be accountable for their performance and must be ready to execute the company’s objectives.

The other theory that has been applied in the business group is the scientific management theory. This theory founded by Frederick Taylor argues that organizations must be able to minimize waste and decrease their production times. The theory has been well used by the TUI group to increase their production process (Klotz, Bolino, Song, & Stornelli, 2018). This is mainly by influencing its people and reducing any form of waste within the employees’ efforts. The management of the company has ensured that it is reducing any form of wastage and making efforts to increase production time achieving its objective and goals in the business. Using the scientific management theory has been able for the company to help in adopting new technology such as web communication, new IT techniques and other management software which has helped the company adapt well since the COVID-19 disruptions. The theory is also focusing on some of the employee’s performance by giving them incentives when it comes to working while sticking to the key performance indexes within the organization.

The management and relationships at the organization are considered philosophical experiences of values and culture at TUI. Culture is known to affect the productivity and performance of an organization. For this reason, the organization culture is tied to Handy’s theory as follows;

Power- the organizational culture at TUI has given the power to a few people within the organization, therefore, making the business management able to be centralized and spread out easily (Guillaume, Constanze, & Torrès, 2019). The strong culture which has been established by the organization has made it easy to manage businesses across different parts of the globe with the decision being made centrally and uniformly to achieve goals by applying technology.

Role- the theory also realizes the fact that there is a need to have high control rules within the organization so that every employee has got well-specified roles and responsibilities. The organization is built on a detailed organisational structure which is having a long chain of command.

Handy’s motivational theory is based on three elements of needs expectations and results. According to the needs factor, employees tend to work hard so that they can meet large personal needs. For this reason, employees will utilize other theories of Maslow hierarchy of needs, motivators and hygiene factors and McClelland’s human motivation theory (Li, 2018). According to this theory, employees will feel very secure in a job where they can be satisfied with their job as they have greater freedom to conduct their work properly (Boyd, Lewin, & Sager, 2019). This theory is widely applied at TUI due to the various culture that is observed in varieties of destinations. The second element of this theory is expectation. Through the key performance indexes, every employee has got several expectations which are to be met quarterly and annually. It is also understood that people will tend to put much more effort if they think that the expectation of the desired results is high. The third element is results and the company has managed to tag results with rewards. Employees are more likely to work harder if they are results are termed as rewards including promotion and recognition (Mahlagha & Faizan, 2020). This type of leadership style has been entrenched in the company making it easy to lure employees to work closely to their connected needs. This form of achievement which is usually rewarded always motivated employees to work hard.

Behavioural Theory

Behavioural theories of leadership are based on the belief that leaders are made and not born. This leadership style focuses on the intellectual abilities of the leader (Bonett, 2020). It emphasizes training where a leader can be stimulated to ascertain a systematic comparison of autocratic and democratic leadership styles. Autocratic leaders can lead employees in an organization if they are present. Democratic leaders can lead employees without their presence.

Management Theory

The management theory focuses on the role of supervision and the performance of the employees. This theory is mainly based on reward and punishment (Cao, Xi, & Zhao, 2019). The main aim of the leader here is to create structures that are expected to be followed by the employees and the consequences are rewards or punishment for failing to meet expectations or meeting the expectations. This management theory is a common leadership style in most modern organizations.

Transformational Theory

The transformational theory focuses on connecting the leaders and the followers. In this case, the leader acts as a connection between the employees and the organization, therefore, causing motivation and morality both for the leaders and the organization.

The leadership model of values interests beliefs and energy (VIBE) works well for the company. Please and research indicate that organizations using this type of leadership model have always led to good working relationships with high levels of involvement and fulfilment between the leaders and the employees (Liang, 2022). It is also observed that this type of leadership has also encouraged better achievement and personal growth among employees and the leadership (Brooks & Schweitzer, 2019). Using strong values to be disposable uniquely defines the essential values of the organization. This has made it easy for employees of the company to be able to explore new values which are unique to the organization. Using this leadership model, it has been easy for the leaders to influence the ability of their employees and therefore tap into their desire personally leading to the achievement of the goals and values of the organization. This leadership position is very important because it leads to competency and expertise through peer influence.

Conclusion

TUI Group has managed to integrate technology in improving its online presence and therefore increasing its participation in social networks to improve delivery. The company has also been able to organize and create new concepts making it very difficult for competitors to be able to replicate their models. Considering that accommodation is one of the first growing segments when it comes to the travel market and tourism the company has been able to continuously expand its online business through online booking creating a strong demand from the emerging markets from Asia and Latin America. The company has also been able to successfully position itself in terms of leadership and management strategies. Through its leadership model, the company has been able to integrate and work well with information technology employees and delivery of its services. The company has been successful in offerings unique standard-based and extensive experience to street consumers and operators. The company has also been able to diversify its business in accommodation and reduced competition through my Jesus and acquisitions. Several theoretical models have been used in the management of the company such as the scientific management theory bureaucratic theory future management theory and administrative theory. All these theories have been well integrated into the company's objectives making it easy to operate smoothly across the globe and increase its profitability. This result has also been easy to infuse with the new technology, especially after the disruptions of the covid-19 pandemic. The company is also using the VIBE leadership model which has been called to be very effective as a motivational process that is making employees achieve their targets as the results are tagged with rewards. The company is supposed to support its business by upgrading its technology, especially in the accommodation sector where a lot of competition and emerging market is observed. One of the key drivers of strategic success is absorbed in the accommodation centre where the company has focused on growth and scaling of its business.

Recommendations

It is important that the company makes a lady extension between long-term strategic risks and shut down operational risks. This will make it easy to be able to deal with consumer differences and preferences while keeping up with the latest technological developments (Cao, Xi, & Zhao, 2019). This will enable the company to be able to expand in the emerging markets in Asia and Latin America.

The company has to find a way of dealing with complexities that are observed in infrastructure which is leading to delays and some observed as complex and inefficient. It is therefore recommended that the company choose a good supply chain that can parade overall consumer satisfaction while improving its brand image.

To attract and retain future talent the company must continue building its leadership capacity by ensuring proper treatment of employee retention and motivation. This is going to ensure employee commitment is addressed.

The company should also improve its online presence as most consumers have adopted online strategies for booking and approving their accommodation (Bedi, Alpaslan, & Green, 2019). Since the disruption of the covid-19, most consumers have preferred to use cashless methods of payment as well as online booking strategies. The company should therefore improve these systems to be able to attract more of the emerging market that is utilizing online strategies.

References

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