- During the second half of the unit, you will need to research, identify and collect a series of patches on corporate entrepreneurship in context as the patches relate to a crisis situation, internal or external, that can lead to an entrepreneurial response(s).
- You will then conceive the best way in which to stitch together the patches so they present an integrated and holistic response to the crisis in question, supported by quality academic theories, models and frameworks.
- Drawing on the your critical analysis and evaluation of your collated patches, the final step of your task will be to reflect on the process of collating and stitching together information into a Patchwork that engages with CIE, completes the crisis-driven response, and aligns with the theme and assignment. You will present your analyses, findings and completed Patchwork, which should total 3,600 words (+/- 10%).
Corporate Innovation & Entrepreneurship
Assignment 2: E-Portfolio / Patchwork Assessment
TUI group has been a market leader in the German leisure and tourism industry. Moreover, it is also a renowned firm in the global tourism industry. Presently the firm faces concern due to a lack of ability to deliver innovative outcomes. Hence, the role of leadership, change management and organisational culture all are crucial for the firm to eradicate this concern of diminished ability to make differentiated decisions. The leadership of the firm might follow a democratic style and the culture needs to be a clan culture to support the innovativeness of the staff. In addition, organised change management following a three-step measure including unfreeze, change and refreeze might support the formation of the organisational transformation. Following this technique in implementing an improved training and development process for the employees might support the firm in increasing the quality of creative skills of the employees. Implementing a personalised training and development session, including practical tasks, and developing a shared virtual communication channel for the staff might support improving the business concern.
1. Introduction to the organisation
TUI Group is frontline German leisure, tourism and travel company with a rich heritage of holding a leading position in the industry for 40 years (Tui Group, 2022). The headquarters of the TUI is located in Hanover. It has a unique business form that includes a differentiated hotel portfolio that comprises more than 400 hotels, a cruise service that includes 16 cruise ships and 3 river ships, six European airlines and a number of travel operators and agencies available both in the offline and online market (Tui Group, 2022). The firm employs almost 50,584 employees to deliver local leisure and tourism services in more than 140 countries, which reflects the large operational network of the firm. This large-scale tourism service delivery has supported TUI to collect a whooping amount of 473.2 crores EUR in 2021 (Tui Group, 2022).TUI group has been focused on continual development following an innovative organisational culture by supporting the creative skills of the employees in developing differentiated tourism plans to improve tourism services in different countries.
However, the firm recently identified concerns regarding the inability to deliver innovative services and recognised the importance of improving the creative mindset of the staff, which has been a barrier in delivering modified differentiated end services to the clients. These paper analysis ways the entrepreneurial architecture might support TUI in delivering innovative services, including the role of leadership and culture. In addition, ways the firm might follow the change management process successfully are analysed. Based on the analysis of the leadership, culture and change management process, the study includes justified recommendations to the TUI group.
2. Main Body
2.1. Critical Analysis
2.2. Ways an entrepreneurial architecture might effectively facilitate corporate innovation and entrepreneurship
Entrepreneurial architecture refers to the organisational framework for understanding entrepreneurship in a corporate context (Farhan, 2018). The term comprises institutional, coordination, communication, and cultural aspects that are internally integrated into an organisation, which are oriented toward its innovation. In the context of the TUI group, the role of leadership and organisational culture in facilitating corporate innovation and entrepreneurship has been described here.
Role of Leadership
Leadership refers to the ways individuals from a higher organisational hierarchy guide and mentor followers to achieve their professional as well as organisational goals. Moreover, leaders set practical instances for their followers by setting examples with their own performances (Harrison, 2018). In the context of the TUI group, it has been identified that the leadership is continually focused on the improvement of the employees, and it ensures that all the employees have the best possible opportunity to reach their maximum excellence level regarding their employability skills regarding responsibilities like delivering customer-oriented leisure services. In order to meet the organisational vision to maintain the leading position in the German leisure industry and to hold a remarkable position in the global tourism industry, the firm has implemented a leadership programme titled VIBE.
Figure 1: Leadership strategy of TUI Group, Source: (Tui Group, 2022)
The leadership model includes four different aspects, which are vision, inspiration, building teams and execution, which have been found relevant by the TUI leadership to ensure continual improvement in the work process and to achieve organisational goals like attaining an adequate number of customer footfall in the leisure and cruise services.
The relationship theory of leadership states the importance of effective communication with followers and inspiring them to attain professional goals. In addition, this theory states that a leader should support the decision making of the employees, which increases their ability to autonomous thinking (Haslam, 2017). In addition, successful leadership, according to this theory, guides the employees with progressive mentorship and timely feedback to ensure the success of the business executions. In the context of the TUI group, the vision stage of the VIBE leadership model, it is identified that the leaders are focused on supporting the employees to make decisions regarding which kinds of tasks and challenges, like developing personalised tourism plans for customers in different countries they want to face. In addition, in this stage, the leaders are focused on maintaining effective communication with the followers to identify following which strategy the followers are planning to meet any professional objectives like improving the airline and cruise services. Hence, the activities of the leaders of this tourism group have been relevant to the relationship theory of leadership. Maintaining positive interpersonal relationships with the employees and supporting their creative thinking in decision making in terms of different professional responsibilities like designing leisure schedules according to different cultural differences in different countries has supported the TUI group in delivering an innovative business outcome, like collaborating with different start-up tech firms to improve the quality of the tourism services. Therefore, it is evident that the leadership quality of the TUI group has been efficient in setting vision among the workforce to maintain innovativeness within the work practices resulting in managing the diver entrepreneurial operations like managing cruise services, flight operations
In the inspiring aspect of the VIBE leadership model implemented by the TUI leadership, it is focused on sharing the values and vision of the firm to engage people in decision making from all the hierarchical layers. This quality of the leadership of the TUI group has been found relevant to the democratic theory of leadership. This theory states that a successful leader stays focused on including people from different operational layers to ensure a higher engagement level of the employees (Wright, 2017). In addition, this theory states including the employees in the decision making supports fulfilling their need of affiliation, which increases the motivation level of the employees. Hence, the initiative of the TUI group to include employees from each operational level in the decision making processes following the policy titled “Employees made TUI” has been a key factor present in the leadership that has supported the development of innovative decisions like delivering responsibilities of tech-support to IMD (Tui Group, 2022). This decision has supported introducing innovative tech gadgets like wearable smart brands for the customers, which has improved the overall guest experience as they can control the room temperature, opening if doors, summon room service etc. using these bands. Hence, the democratic nature of the TUI leadership has been a key factor behind the success of the business. In the inspired stage, the leaders in the tourism sector are also focused on mentoring with energy and leading the followers by example. The great man theory of leadership states that successful leaders are born with attributes that are different from others, which supports them to inspire their followers by leading from the front and setting examples from their own performances (Thompson, 2018). Hence, the attribute of the TUI group leaders has been relevant to the great man theory, which has supported maintaining a creative entrepreneurial architecture by setting examples from their own performance resulting in successful tourism operations in almost 140 countries worldwide (Tui Group, 2022).
In the building team stage of the leadership method followed by the TUI group, it is expected that the leaders rely on o delegating responsibilities to the people according to their capabilities and expertise. The participative leadership style states that the successful leader takes account of the opinions of the others and supports their expertise in work responsibilities related to tourism planning and service delivery (Tseng, 2019). Hence, the perception of the leaders in developing a team according to their expertise support employees to participate in their job responsibilities more spontaneously and deliver more productive result (Thompson, 2018). Thus, this leadership nature of the firm has supported the innovative culture.
In the final aspect of the leadership method followed by the TUI leadership, it is identified that the leaders support the employees in removing any obstacle to their job performance and motivate them with rewards for performing efficient performance and making effective decisions. The management theory of leadership includes the transactional style of leadership states that successful leaders are focused on delivering rewards to the employees to motivate them and increase their capability to manage challenging situations in their professional life (Schein, 2021). Hence, the leadership style of the TUI group has been effective as per the transactional leadership theory as it has ensured a better will of the workforce in making effective decisions regarding different aspects, like adding river cruises into the tourism services to engage an elevated number of people. Thus the leadership method of the firm has been successful in creating an entrepreneurship architecture that is focused continual development of innovative work processes.
Role of Culture in Facilitating Corporate Innovation and Entrepreneurship
Entrepreneurship architecture refers to the managerial framework or strategy using which the management of an organisation strategically uses an effective kind of culture, leadership and policy to affect the behaviour of its human resources to increase productivity and performance (Berry, 2017).
Figure 1: Entrepreneurship Architecture; Source: (Berry, 2017)
In the contemporary business world, staff are considered the backbone of an organisation as their competencies in terms of technical and non-technical skills play a significant part in deciding the innovation level of its product, service and operational strategy. Whenever an organisation deploys a Result-only work environment (ROWE) related cultural policy at its workplace, then its employees get the liberty to focus on increasing the result of the allocated task rather than concentrating on administrative policies like attendance. If TUI Group follows ROWE related culture, like the provision for work from home to employees at its workplace, then they will be successful in accomplishing their allotted work as per their own idea, resources and availability. With the support of the flexibility of work-related culture, Employees of TUI Group will be successful in using the different ideas to augment its quality of tourism products or services. As per the principle of the meta-learning concept of innovation management, whenever the staff of an organisation get the liberty to utilise multiple methods or techniques to accomplish work without any restriction, then the possibility of the development of innovative ideas is aroused (Azar and Ciabuschi, 2017). It means that by incorporating ROWE-related cultural policy, the business head of TUI Group will be successful in encouraging its employees to augment result accuracy by using different techniques, and this will eventually augment their innovation in terms of finding a cost-efficient way of tourism management.
As per the principle of Schumpeter’s theory of innovation management, the degree of innovation among employees decides the business performance of an entity, and this can be improved by developing a sense of unity among them by deploying appropriate cultural strategy (Mehmood, et al., 2019). On the evaluation of the operational and administrative strategy of TUI Group, it is found that it does not have a common platform through which its employees might share their opinions about the existing tourism management-related strategies or policies. If the management of the tourism service-providing company promotes the culture of participating in decision-making at its workplace, then it will be successful in encouraging its employees to make collaborative decisions about tourism products or services innovatively. As per the principle of Isaksen’s theory of organisational creativity, whenever the degree of participation of employees at work is facilitated by the organisational leader, then the possibility of fixing the innovation-related problem is increased, and this eventually augments their innovation (Ali, 2017). With the support of collaborative decision-making culture, the business head of TUI Group will be successful in having innovative contributions like problem-solution-based promotional campaigns of each employee to make a competitive tourism marketing strategy to have the edge over rivals (TUI Group, 2022). The outcome of the innovation in the operational and marketing strategy of TUI Group due to participating culture is that it will be successful in providing tourism services as per customer’s needs, and this will eventually assist in increasing its consumer satisfaction level and market share.
As per the principle of economic entrepreneurship theory, for extracting higher economic value from a defined kind of business, it is needed for an organisation to maximise the motivation level of its employees so that a determined productivity level might be achieved (Azad, et al., 2017). On the evaluation of the existing entrepreneurship of TUI Group, it is noticed that its management has focussed on providing open communication and flexible working related culture to its staff at its workplace. The outcome of the open communication-related cultural approach of TUI Group is that its employees have been successful in sharing their needs and problems with its leaders without any delay, and this eventually assists them in developing a sense of importance in terms of meeting respective requirements (Blaschke and Schoeneborn, 2017). The outcome of the substantial hike in the sense of importance among employees of TUI Group is that they have been motivated to work effectively to increase the reach of its tourism product or service, and this has eventually assisted in generating higher sales or economic value. With the support of open communication related to cultural policy, the business head of TUI Group is found to be effective in developing an emotional connection with its staff. To increase the motivation level of employees of an organisation, it is essential for its management to recognise and meet individual needs without any variation along with aligning organisational goals with theirs. The management of TUI Group has strategically deployed a culture of open communication of the motive of existing and upcoming strategies to its employees, and this has eventually assisted them in understanding how the policy will help them to meet their respective needs (Khan and Wajidi, 2019).
The outcome of the open communication-related cultural policy of TUI Group is that its leaders have been successful in communicating how its goal will help its employees to meet their financial and non-financial needs, and this has eventually assisted in aligning their objectives with it. The outcome of the strategic culture of TUI Group for aligning employees’ goals with organisational ones has developed a sense of unity and common objective within them, and this has eventually encouraged them to work smarter and innovatively to meet determined aims effectively. Using open communication and goal alignment related to cultural policy, TUI Group has been successful in motivating its employees to work effectively and innovatively, and this has eventually assisted in increasing the sale of tourism products or services to have higher economic value (Bradler, et al., 2022). Whenever a sense of emotional connection and common goal is developed within the staff of an organisation, then they become motivated to find the best way using which allotted work might be accomplished on time without higher outcome so that personal needs might be fulfilled. The availability of participation and open information sharing related cultural approach of TUI Group has assisted its workforce in developing and delivering the customer-centric marketing strategy for increasing the demand and economic value (Return on Investment) of its tourism-related product across Europe and the UK (Erkmen, 2018). The result of the higher motivation of the employees of the TUI Group towards increasing competency and innovation of its tourism product and strategy is that it has been found efficient in having 12.5 % more return in 2019 over 2019 from employed capital (TUI Group, 2022).
In short, the cultural policy of an organisation like TUI Group plays a significant part in increasing the innovation level of its employees by stimulating their motivation level, and this eventually assists in having a higher economic value for the business.
2.3. How might TUI effectively manage the organisational change process
Change management techniques refer to the processes followed by business management in altering the existing business process through positive modification or introducing any new method of working to ensure higher productivity (Laig, 2021). Hence, implementing a successful change management process creates an opportunity for a firm to mitigate any existing gap in the organisational performance or to achieve new requirements of the business, resulting in a higher scope of attaining business sustainability (Galli, 2018). In the context of the case study provided on the leading German tourism service provider TUI group, it has been identified that it needs to implement a successful change management process to ensure mitigation of the concern related to the inability to deliver innovative business outcomes in the diverse tourism and leisure services it provides. The Kaleidoscope change management model is relevant to describe ways the leadership of the TUI group might use the change management technique to overcome the concern of inability in innovative thinking.
Figure 3: Kaleidoscope of change management, Source: (Rexhepi Mahmutaj and Koka Grubi, 2020)
This particular model includes three layers that are the outer layer (change context), the middle ring (contextual features), and the implementation of options. The middle ring consists of the operational changes that might be implemented to ensure a successful organisational change. In the context of the TUI group, the time of the implemented change will be of a long time to improve the innovative thinking ability of the employees. The change management will ensure the pro-activeness of the employees so that they can execute operations before any adverse thing happens. In the scope aspect, change management includes either transformation or adaptation techniques. Here, the TUI group might follow a transformation technique to include a new training process in the business to improve the preparedness of the employees in handling unorthodox situations. In the preservation method, a particular competence of the employees in terms of delivering innovative tourism business-related design. In the diversity aspect, all the professionals working in the firm will be aligned with the change of new development techniques. The capability and capacity aspect of the ability of the human resource will be required to be elevated by increasing both theoretical knowledge about tourism business management and practical experience, which might support in making innovative decisions for the tourism company to use Blockchain and machine learning in the business functions to improve the guest experiences.
In order to identify ways the change management process might be implemented by the TUI group regarding improvement of the training and development process, Lewin’s change management model also has been found relevant.
Figure 2: Lewin’s change management model’ Source: (Levasseur, 2019)
Lewin’s change management model states the significance of dividing the overall change management process into three different stages that are unfreezing, change and refreezing methods. Here the change management of the TUI group regarding the improvement of the innovative skills of the employees is analysed.
In the unfreezing stage, which is the foremost stage of change management, the decision makers of an organisation need to identify the requirement of the change. The organisational performance needs to be evaluated, and the gap in it needs to be chalked out. In addition, in this stage, the management needs to possess or develop adaptability skills to implement new methods within the working process so that these performance gaps are mitigated. The adaptability skills of the top management in accepting new process creates an opportunity to implement successful modifications. TUI leaders might follow their existing vision of being lifetime learners and should continue the business culture to support creative works. In the unfreeze stage, it might monitor and assess the performance of each of the departments and the business climate they are performing in. It might support in recognising which department is lacking creative thinking skills, which will support personalised employee-centric training and development for them. The change stage of the change management model designed by Lewin states the significance of performing executions to ensure the success of the change management. In the context of the TUI group, it is identified that firstly it should develop a blueprint as a plan for the change management activities, such as delivering personalised training and development opportunities to the employees to improve the innovative skills related to leisure and tourism business decision making of the workforce such as personalised training sessions. In addition, it needs to avoid any risk regarding employee resilience to accept the organisational transformation. Hence, TUI leaders might announce the change management plan to each of the employees before the final implementation of the change and might encourage them to participate in the change management programme to ensure the betterment of their employability skills like market analysis, customer relationship management, budget management etc.
According to the last stage of Lewin’s change management model, it is required to test the result of the changing activities and procedures and to make a decision based on the evaluation of the effectiveness of the changes done. In the context of the TUI group, after implementing transformational procedures like a personalised training programme for the employee force to mitigate any skill gap and improve their creative skills, it would need a testing period which will assess the differences in terms of profitability, customer queries etc. to improve the innovative thinking skills of the employees. After the implications of the changed processes, a quarter of a year might be considered a testing period for the organisational performance in terms of delivering innovative concepts. Thereafter, the business outcome of the workforce during this period might be analysed with a comparison of the revenue collection, customer complaints etc., with a similar tenure to the previous year. From the comparison, it will be identified how the changed strategies implemented within the business support obtaining business objectives. If the new processes, like the training and development process, are found effective, they will be permanently included in future work processes following the refreeze aspect of Lewin’s model.
From the critical analysis of the role of entrepreneurial infrastructure, including the role of culture, leaders and change management within an organisation, it is synthesised that all these aspects play a vital role in managing business success. The leaders of the TUI group have been focused on continual improvement, which has been a key reason for the existing success of the firm. However, as the firm has been lacking innovative qualities recently, the leaders need to take elevated responsibility to improve the creative skills related to tourism planning of the staff in terms of decisions like delivering personalised tourist schedules to clients, mitigating customer queries as soon as possible etc. such as implementing AI-powered services to improve the customer services with automated replies of the customer queries. Using their existing experience and leadership skills of themselves, the management needs to engage people from different managerial levels to make decisions for their respective departments, which might enhance the innovativeness of the workforce with diverse and differentiated business strategies. From the cultural role analysis, it has been identified that the clan culture present in the business to follow a collaborative nature has been fruitful for the TUI group in managing the global tourism chain. Hence, in order to improve the innovativeness of the staff related to tourism planning in the global business chain, the firm will need to focus on the collaboration among the employees and their spontaneous participation in the decision making process, which might support in ensuring a better decision making capability of the workforce resulting in an innovative outcome like delivering personalised tourism schedule to the clients, managing discount and greetings for the customers etc. From the analysis of the ways the change management processes might be managed by the TUI group to attain a better innovative workforce culture, it is synthesised that following an organised way of working will be required to ensure successful change management. As a consequence, the firm might attain a higher possibility of ensuring better innovative skills of the employees in developing different tourism-related plans according to the diverse cultural preferences in the different business territories. Firstly the exact requirements related to change will be required to identify, and adaptability of new processes should be secured in both the management and operational employees. Thereafter the transformational activities need to be done within appropriate mentorship, and the effectiveness of the change needs to be tested before implementing it permanently within the organisation.
In order to ensure a better competitive position in the global tourism and leisure industry TUI group needs to mitigate the concern related to the inability to make creative decisions by improving the training and development procedures. In order to mitigate this concern, the leadership of the firm might focus on being democratic leaders and allowing people to effectively participate in the decision making. In addition, a participative organisational culture might be supportive for the business to diminish the threat of lack of creativity. Following an organised way in the change management process, including activities like informing the employees regarding the change and motivating them to accept that, testing the effectiveness of the change etc., has been found to be the key initiative to improve the potential of the transformational process to become successful.
In order to improve the potential of the employees to deliver creative solutionslike delivering industrial training for the employees focusing on organisational transformation for improving the creative thinking skills to any business requirement of the TUI group, the leadership should implement a training and development session from an out-house facility which delivers professional training to the tourism industry students and employees. It might support increasing the theoretical knowledge of the employees resulting in a better potential to make creative decisions for their respective departments. In addition, the training session might include a simulative atmosphere similar to their workplace, and practical tasks must be given to complete. Hence, it will support them to increase their ability to be prepared to handle unorthodox business situations. In addition, peer-to-peer knowledge-sharing services should be implemented to improve the knowledge and expertise of the staff. An IT service provider must be collaborated with, which will develop a virtual communication platform that might be accessed by all the employees. It should be used to allow the staff to post job-related queries and others to answer those queries. Moreover, the platform might be AI-powered, which will facilitate managing the traffic and showing the appropriate answers on top. Hence, it will support knowledge creation and improve the creative skills of the staff.
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