Leadership and Changes: Applying Kotter's Model to A2B Taxi Firm

This report examines leadership and change management principles within the context of A2B, a private hire taxi firm. The report begins by highlighting the crucial role of human resources and the importance of effective management and leadership in an organization. It then delves into the case scenario where A2B plans to restructure employee wages and shift patterns, leading to negative initial reactions from drivers. The main body of the report explores various change management models, with a specific focus on Kotter's 8-step change model, detailing each stage, from creating urgency and building a guiding coalition to communicating the vision, removing obstacles, creating short-term wins, consolidating improvements, and anchoring the changes. The report analyzes how these steps can be applied to A2B to successfully implement the proposed changes, emphasizing the importance of understanding different types of organizational changes, such as developmental, transitional, and transformational changes. The conclusion summarizes the application of the change model and its potential impact on the organization.

LEADERSHIP AND
CHANGES

Table of Contents
LEADERSHIP AND CHANGES...................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In an organisation, human resource plays a very crucial role as they operate the business
activities and functions in an effective manner. In the absence of employees, company cannot
carry out its business activities and functions. Thus, it is very important for the company to
manage the employees in such way that they can effectively perform at workplace. In this
manner, managers play a key role (Akers, 2013). By impressive leadership and monitoring
practices they can manage the workforce and their performance in better way. In the following
report, leadership concepts have been systematically defined with respect of the A2B which is a
private hire taxi firm. According to the case scenario, A2B cab firm is going to restructure its
employees wages ad their time shift pattern. Cited venture is planning to have just been
announced to the driver in outline terms and condition. The initial reaction of the driver has been
very negative. In this assignment, changes management model has studied which defines that
how changes occur within the organisation for attain the business objective and manage the
employees.
MAIN BODY
In the present time, every company desires an effective success and growth in the market.
In the business environment, there are large numbers of the organisations which have impressive
business strategy through which they survive in the market. In order to gain an effective outcome
within the market, corporation should manage its workforce in such manner as they perform their
responsibility in excellent manner (AlMazrouei and Zacca, 2015). As human resources play a
very crucial role within the company and in the absence of it, company cannot attain the
objective. To manage the employees in better way, manager plays a very crucial role. Manager is
a person who has responsibility to develop the strategies, policies, practices of business and
monitor employees’ performance. On the other hand, leader is a person who controls, monitor,
guide and motivate employees so as they can accomplish their assignment in an excellent manner
(Avolio and Mhatre, 2012). Leadership is very important aspect within the company, leader is
able to guide and monitor subordinates for attain the objective. While employees and leader have
strong bonding then they will automatically perform their job in better way and achieve target of
the organisation. Sometime, for smooth functioning of the business, changes required within the
organisation.

Organisational changes are about reviewing and modifying management structure and
business processes. In order to attain the bigger target and gain excellent success in the market,
changes in the business strategy, practices, structure, policies are very important for company. A
company's changes drivers include the competitive environment, new technologies, government
policies action, economic conditions etc (Barrick and et.al., 2013). While company occurs any
changes in the policies, practices, strategy, structure then it will great impact on the performance
of business and employees.
As per the case scenario, A2B is a private hire taxi firm and it has been in operation for the past
10 years. In this cited venture, firm's taxies are not allowed to pick up flag down customers. In
this company, all taxies should have booked over the phone and internet and are sent to the
relevant address by the controller. Cited venture' taxis are not allowed by the law to pick up
casual customers. In the A2B company, there are not performance based pay for employees. Its
drivers are currently paid a flat rate salary for driving for the company. It means employees gets
salary in every month on same basis which is not related in any way to the number of miles. In
the present time, management wants to introduce a system under which employees should be
paid according to their performance basis. In addition to this, management believes that this
system will allow enhancing the pay of driver (Collinson and Cook, 2013). For this planning,
company required to understand the change management model.
The are are various kinds of changes in the business context. Some of the business changes are as
follows-
 Development changes- In the context of development change, changes occures in the
business growth, structure, policies, process etc. It improves the existing business
processes within the company
 Transitional change- It is that change by which company replace the existing processes
with the new process. It includes create new product and development, implementing
new technology, experiencing corporate restructure etc.
 Transformational change- In the context of transformational change, company completely
reshape the business strategy and processes. These changes may be a response to extreme
or unexpected market changes.

As per the case scenario of A2B , there are not performance based pay for employees. Its drivers
are currently paid a flat rate salary for driving for the company. It is going to restructure its
employees wages ad their time shift pattern. Cited venture is planning to have just been
announced to the driver in outline terms and condition. Thus, it can be said that cited venture is
going to adopt the transformational changes under which new policies, patter and structure are
allotted by the management.
With help of change model, leader can easily understand the needs of employees and full fill it
accordingly. In this manner, Kotter's change model is very effective which assist to management
in A2B company for implement changes elated to drivers pay and shift pattern. Following are
systematic description of Kotter change model-
 Create Urgency- It is the first stage of the Kotter's 8 step change model under which
making employees aware of the requirement and urgency for change. It is the stage under
which employees aware about the necessity of changes. In this stage, higher authorities
have responsibility to communicate with employees about the potential threat and its
relevant solution (Daicoff, 2012). As per the case scenario, the major issue is related to
the system of pay to employees. Company pay the salary to employees in every month
which is not related in number of miles driven and work a shift pattern. Driver shift
pattern will also have to be changed. Management believes that this new pay system will
allow drivers to increase their pay and they can able to give their hardest working for
attain the success. For this reason, cited venture is going to announce the new outline
term which have clear new terms and conditions related to the business process and
system. Thus, in the first stage, higher management of the company need to disclose the
reason for changes and also disclose the what future impact and outcome by these
changes within the company.
 Create a guiding Coalition- Once the reason for changes and its impact in the future
discussed in the first stage then in the next stage management develop the team working
at the workplace. In order to implement the changes, role of all employees is very
important. In the absence of employees’ participation and contribution, company cannot
attain its business success. In order to attain the desired task, it is very important for the
employees to adopt collaborate working at workplace. In this stage, management should

try to develop the coalition and guide them in such manner so as they can attain the
desired outcome (Frick and et.al., 2014). Managers should contribute in effective manner
so as employees and other team members can encourage for impressive working at
workplace in this stage. This coalition assists in improving the knowledge and
understanding of workforce so as they can effectively perform, at the workplace. In the
team working, employees can easily exchange their knowledge, idea, ability with each
other. Thus, it can be said that in the second stage, company can create the coalition
under which all employees understand the desire change and its working.
Illustration 1: Kotter change model
Source:Fullan, 2011 Create a vision for changes- Once the group of member develops within the company
then in the next stage, management formulate a clear vision which can help everyone in
understand that what the organisation is trying to achieve within agreed time. In this
stage, it is great responsibility of the company to describe clear vision of the company to
each employees so as they can understand that what actually company wants to change
and improve within the business. In the case of A2B management should defines the
vision of the organisation and its propose changes which needed in the future. With

assistance of this aspect, every employees can easily understand the reason for the
changes and target of the company (Hakanen and van Dierendonck, 2013). Vision defines
that where company actually wants to go for attainment the success. As it is a taxi hire
firm which have main objective is to provide the taxi services to its customer in the
reasonable prices. It has created its own page on the internet by which customer can book
the taxi for ride. Communicate the vision- In the Kotter 8 steps of changes have important objective is to
create support and acceptance among the employees. In this stage, higher management
communicate the vision about the changes. Remove obstacles- Once the management effectively communicate he visions to
employees about the future changes within the comp;any then in the next stage it is great
responsibility of the company to remove the obstacles that could undermine the vision.
This is very important for the company to remove the obstacles because by this there may
create the huge issue in the process of changes (Frick and et.al., 2014). In the context of
A2B management should remove the obstacles by defining the clear vision of the
company to each employees. While management clear the obstacles then it can easily
identify that how many employees are resist to changes in the company. It is very
important stage in the change process under the A2B company because by this,
management can easily identify that how many employees are not want to changes within
the business, policies, practices and strategy.
 Create short term wins- Once the management of the A2B company effectively remove
the obstacle in the previous stage then in the next stage management will create the short
term wins. With help of this, it can create short term goal so that the employees have a
clear idea of what is going on in the business enterprise. In a simple word it can be said
that in this stage, management of firm should set the short target for company so as
employees will motivate to attain the short term target (Kathy and Deborah, 2007).
While they achieve the short term goal then they will motivate to fine tune and expand
the changes.
 Consolidate improvements- Once the organisation effectively create the short term win
for its employees then in the next stage, company have to work on the changes. For
instance, if company is going to implement some new process, structure, system of the

business then company have to train its employees for the future changes. In addition to
this, if company bring some new technological structure then it has to organise training
session for its employees so as they can improve their skill, knowledge and ability to
perform with new technology. In the case of A2B company, it is going to announce terms
and condition of the business pay scale and shift pattern thus it is very important for
management to make preparation for changes like development of new policies,
documentation, practices, structure and business system etc.
 Anchor the changes- Once the company have make the preparation for upcoming
changes, then in the next stage finally management implement the changes which
required within the organisation (Krogh, Nonaka and Rechsteiner, 2012). This should be
done through documenting them and establishing best practice guidelines as well as
providing training where necessary. In this stage, cited venture finally implement the
changes related to the driver shift pattern. This process can accomplish with flexible tools
and software that allow company to make adjustment while working and provide an
opportunity improve small details constantly. In the case of A2B company, in this stage
finally management takes the action to implement the changes related to the business
process, system, structure etc.
As per the above discussion it has been analysed that with help of the Kotter model of change
A2B company can implement the changes in the business related to the driver pay scale, terms
and condition, shift pattern etc. However, this model have some disadvantage which can create
the issue for the cited venture. Limitation of the Kotter model are as follows-
 This kotter model is rational, goal and plan oriented. This changes looks good on paper as
it makes the rational changes (Kaur, 2015).
 It does not focus on the human feeling and experience. In addition to this, there is not any
relation with the company culture, structure and system.
 One another major limitation is that ion order to implement the changes, management
requires spending lots of time because it has lengthy process and various phases which
required to understand by management.

CONCLUSION
From this report it has been concluded that in every business enterprise, changes is
necessary for improve the business performance. With help of the changes company can able to
improve success and growth in the market. It has been also concluded that with support of the
leader and higher authority, employees can easily accept the changes within the corporation.

REFERENCES
Journal and Book