http://www.bized.co.uk
Management Structures in
Travel and Tourism
BTEC Travel and Tourism
Copyright 2005 – Biz/ed
http://www.bized.co.uk
Business functions
• Human resources
• Sales and marketing
• Operations
• Customer service
• Finance and accounts
• Administration and IT
Copyright 2005 – Biz/ed
http://www.bized.co.uk
Human resources
• Recruitment and selection
• Staff retention
• Motivation
• Discipline
• Training and development
• Health and safety
Copyright 2005 – Biz/ed
http://www.bized.co.uk
Sales and marketing
• Sales strategies
• Pricing decisions
• Promotion activities
• Market research
• Sales team
• Product or service development
Copyright 2005 – Biz/ed
http://www.bized.co.uk
Operations
• Buying stocks
• Planning travel operations
• Monitoring costs
• Future business planning
• Efficiency
Copyright 2005 – Biz/ed
http://www.bized.co.uk
Customer service
• Dealing with customer enquiries
• Advising customers
• Monitoring service delivery
• Dealing with customer complaints
• After-sales service
Copyright 2005 – Biz/ed
http://www.bized.co.uk
Finance and accounts
• Cash flow: monitoring costs and
revenues
• Preparing accounts
• Raising finance for investment
• Communication with other areas of
firm
Copyright 2005 – Biz/ed
http://www.bized.co.uk
Administration and IT
• Internal business communications
• Clerical work
• Telephone systems
• Reservations database
• Company Web site
• Email system
Copyright 2005 – Biz/ed
http://www.bized.co.uk
Management control
• Authority – the right to make
decisions and perform tasks
• Span of control – the number of
people for whom a
supervisor/manager is responsible
• Chain of command – how the
layers of authority are organised in
a firm
Copyright 2005 – Biz/ed
http://www.bized.co.uk
Management control 2
• Hierarchy – who is responsible for
whom
• Empowerment – responsibility to
make decisions is given to all
• Delegation – authority passed from
a superior to a subordinate
Copyright 2005 – Biz/ed
http://www.bized.co.uk
Ways to structure a business
• By function: arranging the
business according to what each
section or department does
• By product or activity: organising
according to the different products
made
• By area: geographical or regional
structure
Copyright 2005 – Biz/ed
http://www.bized.co.uk
Ways to structure a business 2
• By customer: where different customer
groups have different needs
• By process: where products have to go
through stages as they are made
• What are the advantages/disadvantages
of different types of business structure?
Copyright 2005 – Biz/ed
http://www.bized.co.uk
Pros and cons of different structures
• This depends on the business type,
size and structure used
• Let’s look at a functional structure:
Chief Executive
Board of Directors
Production
Marketing
Accounts
Personnel
IT
Copyright 2005 – Biz/ed
http://www.bized.co.uk
Functional structure
Advantages
• Specialisation – each
department focuses
on its own work
• Accountability –
someone’s
responsible for the
section
• Clarity – know your
and others’ roles
Disadvantages
• Closed
communication
could lead to lack of
focus
• Departments can
become resistant to
change
• Coordination may
take too long
• Gap between top
and bottom
Copyright 2005 – Biz/ed
http://www.bized.co.uk
Management structures
• Now go to the Activity for more……
Copyright 2005 – Biz/ed