Evaluating Organisational Culture and Leadership at TUI: Strategies for Effective Change Management Case Study

Evaluating Organisational Culture and Leadership at TUI: Strategies for Effective Change Management

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Introduction: Evaluating Organisational Culture and Leadership at TUI

Entrepreneurial architecture is the set of rules, norms, channels, and structures that influence an individual's behaviour in a specific strategy and deliver the flow of knowledge and new idea or innovations from the specific university to society. Nelles and Vorley (2009) proposed a framework that can illustrate the internal mechanism that involves how entrepreneurial activities have been carried out. It is embedded into the core institutional missions of the specified university that have been expanded to include contextual influences. As discussed by Hampel et al. (2020), there are 4 types of entrepreneurs present, these are a small business entrepreneurial, large company, social entrepreneurs, and scalable startup. It is made up of the coordinating, communicative, institutional, and cultural elements of an institution for introducing new ideas and innovation. There are 5 stages of entrepreneurial architecture that include planning of the new ideas, execution of the planning, scaling, and hypergrowth, and introducing the new idea for better improvement of the organisation. 

The full form of the TUI group is Touristic Union International or now it is known as Tourism Union International It was introduced as Preussen AG in 1997, when this company change its activities from mining to tourism. The headquarter of that company are in Hanover, Germany. The main objective of this company includes giving a certain map or blueprint of the whole structure of the organisation and how the whole function has worked for that particular organisation. Chan and Liu (2021) proposed that the blueprint can include information like a map of the IT assets and all the business processes. The other goals of the company include promoting the business, team alignment and standardisation. The main barriers to entrepreneurial architecture are the high risk, lack of networking on a social basis, lack enough resources, low effectiveness of hard work of the employee and stress. the main goals are to introduce a new idea and how to implement it on a practical basis and in proper execution that can help the organisation improve (Sukumar et al., 2021). Apart from the goals that can achieve by the company, there are several barriers that can solve by the company.

Changing process

Analysis of Organisational Culture and Leadership

Importance of organisational culture

The organisational culture of any company represents the specific, pre-determined policies that can provide guidance to the employee and also give a sense of direction of how the total work has been done. It is a complex system of any company that comprises a share of values, beliefs, and assumptions as well as employees' behaviour within the organisation. This understanding of the assumption, values, and behaviours contribute to the distinct and unique social and psychological improvement of the company (Cui et al., 2021). As stated by Denlertchaiku et al. (2021), the TUI company's organisational structure is based on Hofsetede's organisational culture model. The organisational structure is important because it helps businesses implement efficient decision-making processes. Any business requires two main two things: the structure of the company and how to achieve the goals of the company for better improvement and make the business profitable.

Figure 1: Importance of organisational culture

Communication structure

Though the information that can flow is more important to any organisation for success and the organisational structure can be designed in such a manner that includes clear communication in mind, and it is necessary for better communication skills from the company to the employee. For example, the planning on a financial basis and analysis of the department that might be reported to the chief organizer of the company and senior vice president and all the reports that have been provided in the financial basis by the company. Masayuki (2013) advise that for the better establishment of the company, good communication is very needed for the company's development on a worldwide basis Makin (2012) proposed the whole organizational structure can be planned in this way there must be enough human empowerment and human resources with the right skills that to accomplish the company's goals and the responsibility that can be clearly defined.

Clear reporting

A clear reporting relationship is much more important to better establishment that must be clear so that all the staff of the company can understand what their responsibility and how to implement and to whom they are accountable. These clear relationships can make the whole responsibility easier for managers and how it can be supervised by those at the organizational levels. Jackson and Orr (2019) posit that through this clear reporting relationship, the employee can benefit by knowing their work and responsibility so that they can turn to the direction and what people to whom be helped. Managers of the company to have enough knowledge and awareness that who is outsiders in their company so they do not overstep their norms and boundaries and do not interfere with the manager's responsibilities. 

Efficient task

The well-designed structure of the company gives better facilities that can improve the company's population. The project manager of that company can better identify the human resources that cand available to the company and can give them enough responsibility. The project manager has enough knowledge about their company's norms and regulations on a market basis. For better popularization, the project manager can implement the idea and the norms on this basis so that every employee of this company can understand their responsibility. Guo et al. (2020) explain that this company is based on tourism purposes so the staff are well known about their responsibility and how the tourist can be satisfied by their services. 

TUI has 1758 employees and the management team includes Frank Kuhlmann., and the head of the sustainability of the company is Lucienne Damm and the senior manager of the company is Ortmann. The 4 leadership styles the TUI company uses are democratic, autocratic, paternalistic, and laissez-faire. Farooq et al. (2020) propose that the leadership style of the TUI companies is open and inclusive and the senior manager of the company has understood the importance of the employee's needs and a wider range of engagement to their business success. The five leadership styles that have been maintained are the leadership of delegative, the leadership of transformational, leadership of participative, the leadership of authoritarian, and leadership of transformational.

Entrepreneurial architecture that can contribute to organisational culture

Culture can be defined as a habit that can occur repeatedly that can be performed by the person or the group of the person and can believe in a certain value and accept the rules and the regulation of the tradition. Azeem et al. (2020) proposed that in organizational culture, it can be regarded that is a system that can be shared by the members of that organization. According to Zhou et al. (2022), organizational culture involves the values and the assumption consciously and unconsciously that be capable strengthen of an organization The organizational culture norms and values can be maintained by all the staff of the company. Every company has its own organizational structure that can be maintained by the staff of the organization. Olalere and Mukuddem-Petersen (2022) argues that the manager can ensure that the whole organization's culture has been set up according to the employee's work and responsibilities. It is very important to build a perfect company so that everyone can maintain their own company's rules and regulations in a particular manner.

Ambidextrous leadership

This leadership style is recently introduced by scholars that can be characterized by a special approach to leadership and it is mostly used in the organization here it is used in TUI company for better improvement of the company. Soomro and Shah (2019) said that it is related to the simultaneously explorative and exploitative of the leaders. It is a theory that can be passed by the leader that it is the interplay between the closing behaviours and the opening behaviours that enhanced the followers for exploration and exploitation behaviours which can increase the new idea outcomes (Guo and Peng, 2022). For managing the people in the particular organization, the leaders have both the capacity to lead the whole things on the front and tell the people what they can do but also the step back and function as a coach.

Ambidextrous organisational leadership structure emphasizes the employee’s participation and involvement that is aligned in the view point of that organisation innovation that is achieved by the innovative behaviour of the employees. Jackson and Orr (2019) posit that while managing the employee of the company or an organisation ambidextrous leaders have both the capacity to lead the whole organisation in particular manner and telling the employee what to do and also introduced himself to the employee as a coach. Ambidextrous leadership style can be effective for the company in the development of performance as well as competitive advantages.

Ambidextrous leaders are individuals who can successfully create a balance between the demands for innovation, change, and adaptability and the demands for stability, efficiency, and optimisation in the context of leadership. They have the ability to coordinate and manage seemingly incompatible tasks, such as encouraging risk-taking and stimulating creativity, while also keeping an eye on operational excellence and delivering results. Azeem et al. (2020) proposed that the development of this leadership style assists companies in the development of collaboration as well as cooperation among employees. In order to encourage innovation and growth, ambidextrous executives recognise the value of examining new concepts, technology, and markets. They foster an environment that values learning from mistakes and taking measured chances, promote experimentation, and offer resources and support for new endeavours. They also understand how important it is to make the most of current assets in order to provide consistent performance, maintain customer happiness, and ensure operational effectiveness.

Evaluate leadership and culture at TUI

The TUI company has maintained democratic leadership which is also known as leadership participative and it is said about multiple people can participate in the decision-making process. This leadership can be seen in a wide range of things from business to schools and the government. The main function of this leadership can work on two work basis that is the distribution of responsibility by the manager of the company and all the responsibilities that can be distributed in the manner of what kind of employee can work and all the responsibility can be distributed according to employees' culture and the manager of the company can be given the responsibility to the employee on the organizational culture manner (Chen and Ma, 2022). All the organizational culture can be maintained by all the employees under the supervision of the manager. 

Usage of Amabile, Isaksen and Ekvall model

By using this model, it can be explained that organizational culture that contains measures and innovative idea that can support the creativity and innovative idea of the company that improver for better development of the company on the wide world basis. According to Isaksen, it can be explained that some of the measures within the organizational climate can improve the innovativeness of the idea that can help for better improvement of the company. According to the organizational culture, all the employees can maintain the norms and the regulation of the company, and the whole structure of the company can be maintained in this manner. As discussed by Zhou et al. (2022), in TUI companies follow this model for better improvement of the companies on a worldwide basis. The employee who is worked for that company is very skilful in communication they know their responsibility to help the company better improvement of the company and the rules and regulations of the company that need to focus on the company for better improvement of the companies’ rules and regulation that has been followed by the company for better improvement.

Entrepreneurial architecture culture and demonstration of ambidextrous leadership

TUI company can maintain the entrepreneurial architecture culture for better improvement on a tourism basis. It is influenced by individual behaviours, rules, and regulations that can help for the better improvement of the company. It is the internal mechanism of the company that can help all the stages of the company's employees and also maintain their responsibility that can be given by the company's manager. The explorative and the exploitative leaders play a very crucial role in the development of the company and it is very essential for the company's population. As stated by Karanasos and Yfanti (2020), the internal mechanism can be designed in this manner so that every employee can be maintained the norms and the regulation of the company and it is very essential for the development of the company on a worldwide basis. Usage of ADKAR model can help the company in development of innovation. TUI can ensure that it is more widely known in the world. TUI’s does not have a wide scope in terms of popularity and awareness. This will help the management of the team as well as can result in more growth of the organization (Stankov et al. 2020). The knowledge factor can be used by TUI to increase its knowledge about the industry. TUI being a tourism industry has to always know about the current demands of the market. This is why it can benefit from indulging in availing more knowledge (Hamdo, 2021). 

TUI needs to not only plan steps to improve but implement those plans in action. Unless the actions are taken, the organization will not be able to improve and grow more as an industry. Therefore, steps and implementation are necessary for resolving the challenges faced by the company. The need to change is the most important step in bringing a difference in the organization. TUI needs to reflect on the challenges faced and then take the necessary steps to resolve those challenges. Sustainability is the most important factor for any organization in the present times (Orji, 2019). If any industry or company wants to run in the long run, they need to strategize and implement those strategies. TUI needs to reinforce ideas that can help them in being relevant in the long run.

Managing the change process for better outcomes

Common challenges Of the Company and Resistance to the Changes 

 The common challenges that can be faced by the TUI company are the total cost of the living crisis and how the people rein their spending. There are some challenges that can be faced by the company to do well work for better improvement in the future and more diverse effects that can be created by the tourist. The challenges that are faced by the company as on the communication barrier in every stage and the promotion of their company and also the profitless due to bad promotion of the company. This company can face many challenges so the company needs to solve the problems that the company needs to focus on (Wang et al. 2021). Th e main change the TUI company needs to overcome is proper organizational culture that all things can be maintained on a systematic manner. The main challenge that the company is faced is a communication barrier the company needs to solve the problem in the perfect manner. The responsibility that has been given to the employee can be maintained properly and it can be supervised by the manager of that particular company.

According to the Kaleidoscope and Jabri of changing models, it can help to change all the decisions and the implementation planning that can change all the organizational structures for better improvement of the company. In this type of model, there is various step that can be included, these are changing the whole pathway depending on the end state of the company and how all the changes can be implemented. In changing the start point the organization needs to implement what type of changes can be needed for better growth of the company and be predetermined and it also needs to be focused by the company on the employee's requirement. As discussed by Balcilar Ike and Gupta (2022), the main change is to need for the better development of the company is to change the style of the company according to the customer needs also the main important changing part is changing the target and can be very needed for what and for whom the target can be changed. The company needs to focus on this manner and it can be maintained by the company for better improvement. 

Structure change management of The TUI company

The whole organizational structure can be changed by the manager for better improvement of the company. The TUI is a tourism company so its organizational structure is different from other business-oriented company. The main barrier of that company is communication so the the company needs to focus on the settlement of the company's organizational structure in this manner so that every employee can understand their functions and the responsibility that needs to be focused on. The company needs to focus on the customer needs and the requirements of the customer. Tarasov Julio and Lang (2019) explainthe whole organizational structure can be maintained in this manner so that everyone can maintain their responsibility on particular maintenance and work their function accordingly. Through it is the travel and tourism company and the total organizational structure are be different from other business-oriented companies the management can very focused on the company's rules and regulations and it can be maintained at every stage of the company.

Application of two change management models to TUI

The two models that can be implemented on the changing of the management included the ADKAR model of management changing, in this changing model acknowledgment, awareness, desire, and ability, as well as reinforcement are the most common elements for improving the management system, and that can also help for the better development of the company. According to the AKDAR managing change, there are various goals included these are the desire to change according to the customer needs, providing enough knowledge of the employee for better improvement of the company, reinforcement changes, and also creating awareness of the change. As discussed by Karanasos and Yfanti (2020), for better improvement of the company, this change must be included for better establishment on a worldwide basis, and it is much needed for the company as well. According to Kurt Lewin's model, the company's changes are needed in the following 3 steps: unfreezing, changing and refreezing. According to him, this changing process is very needed by the company for the desires of the customer and their behaviour.

In organisational culture, the company leadership or manager plays a very important role. All the organisational culture has been set up in this manner so that every employee can understand the organisational culture and understand the company's norms and regulations that can be maintained in a particular manner and everyone can maintain it. Killins et al. (2022) argue that for better improvement of the company, it is very essential to set up the proper organisation so that everyone can maintain it in a particular manner. The leader of the company needs to focus on how the total setup has been working for the betterment of the company and all the setup has been set up so that all the responsibility that have been given to the employee can be fulfilled according to the company's needs.

Integration of critical analyses

For the development of the company, integral market analysis is very important to describe. On the basis of the marketing system, the company needs to be so focused on marketing managing that they can implement all the rules and regulations that can be very important for better development, not for the company. As discussed by Clance (2020), the whole marketing system can be changed in this, manner so that all the employees can give their best performance for the responsibilities given by the company and how they can be implemented for the betterment of the company. The company needs to focus on the things that can be maintained in a particular and in systematic manner, it also improves the whole structure of the company. The company needs to focus on the desires of the customer, and the whole organisation can be marked on a democratic basis the requirements of the customer. The management of the company needs to focus on the function for which they have been working. The whole organisational structure can be made in such a manner that all the step of the company can give innovative idea that the company needs to focus on for better growth and development. This company works on a democratic basis, so it needs to focus on the customer requirement that has been needing to meet.

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Conclusion

In this study, there has been an overall analysis of TUI and the current initiative the company has taken to support its commitment to cultural change. The different steps that TUI needs to reinforce in order to improve its performance have been identified. The organisational culture of a corporation is significantly influenced by the entrepreneurial architecture of that organisation. It includes all of the organisational components, such as structural elements, systems, procedures, and values, that encourage and promote entrepreneurial activity. It contributes to the development of a culture that values innovation, risk-taking, and proactive decision-making. Employees can explore new prospects and promote organisational growth thanks to entrepreneurial architecture, which gives them the tools, procedures, and incentives they need. It can be difficult to determine clearly whether TUI has an entrepreneurial architecture culture and whether its executives are ambidextrous based on current information. 

Recommendations

TUI has faced several challenges due to communication barriers. The lack of proper flow of communication among the employees, staff or organisation has made working difficult and results in low morale among the employees. In order to improve this, TUI can take initiatives such as holding workshops for employees, enabling them to interact more (Mohajan, 2019). Human resource management of the organisation can hold sessions with employees to resolve their queries. This will give employees a sense of belonging in the organisation.

The organisation can develop by introducing ambidextrous leaders that can help improve the company for active participation and involvement of employees.

development of ambidextrous leadership style can help in the development of strategic vision as well as balancing short-term and long-term objectives. They are able to find a balance between the requirement for stability and performance in the short term and long-term growth and innovation (Soomro and Shah. 2019). Along with this, they properly distribute resources while taking into account both present requirements and potential future gains.

By introducing ambidextrous leadership behaviours that can help to generate the confidence of the employee on the basis of their knowledge and abilities of the work performance and skills, this confidence is useful to increase the leadership efficiency and thus improve the workplace (Wang et al., 2021).

TUI lacks in various aspects in managing change. Thus, implementing ADKAR’s model of management can be helpful for the organisation to deal with the challenges faced throughout. ADKAR model of management focuses on key elements such as awareness, knowledge, ability, desire, and reinforcement (Bekmukhambetova, 2021). 

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