Taxi industry is one of the most challenged business sector globally. Everyone is concerned with the low- quality services, convenient availability of taxi’s as well as safety issues at late night hours from an unaccounted taxi driver. Often, taxi drivers charged more than reasonable fare or refuse to pick up. Not even that but sometimes taxi drivers discriminate while pick up passengers on the basis of race, color and disabilities (McGregor, 2017). Taxi industry comes under consumer protection and business affair department that regulates the operation of taxis. It is a complex business sector dealing with enormous issues related to behavior of drivers and filling several complains daily.
Uber introduced its services in early march 2009 with leverage by using latest technology and easy operational services. Uber offered its transportation services through simple mobile application which is effectively quick and easy. It provided law cost services with safety guarantee for the customers (McCormick, 2017). Working hours are very convenient and can be booked even for some later. Today it has expanded its branches in over 80 countries and more than 300 different cities. Although it has faced many challenges in different regions in operating its business, yet it is growing and giving tough competition to local transport players (Johnson, 2017).
Uber company was founded by Travis Kalanick and Garrett Camp in San Francisco. The idea was to introduce a luxury car service in the market because everybody was facing challenges in finding cabs that time. Uber changed the way people commute all over the world and begins a ride-sharing facility. Travis Kalanick is technology lover and he put his idea through technology by connecting cabs with application (Kalman, 2017). There are many entrepreneurship qualities in Travis that made him successful man in his later life. Uber was his third successful venture.
When he started business, Uber has faced many challenges but he never gave up and did not afraid to take risks. He believes that every great business idea comes from solving problems, small resources and restricted budget should not limit your determination, customers should be attracted by providing them better options and everybody should learn from its mistake and move on with the lesson learned (McGregor, 2017). Along with this, hurdle in setting new business should never weaken efforts to overcome issues. These above motivational believes of Travis gives an insight of effective and successful leadership.
However, Uber has faced many legal action in past few years such as sexual harassment cases as well as faced competitive pressure persistently and globally (Kalman, 2017). Many global and local famous taxi companies like Lyft, Curb, Didi Chuxing, Garb and Ola are the biggest competitors of Uber. Recently, Travis has also faced issues alleged as an ineffective leader after his video was out on the internet in which he was thrashing his cab employee over fare aggressively. This incident also affected Uber”s overall image in front of its customers internationally. Uber app had been uninstalled by over 200,000 people after that video was out (Carlson, 2017). Hence, the company is facing some real and serious reputation issue now. In a recent post on Uber’s official website, Travis Kalanick acknowledged his fault, apologized and asked for leadership advise too (McCormick, 2017).
According to Cameron (2013), competent leadership is a vital and essential part of the business. The effect of leadership is always visible from top management to employees as well as in the customer’s feedback (Cameron, 2013). In taxi industry leadership practices are mainly focused on six dimensions that are innovation, profitability, quality, employee retention, productivity and customer satisfaction. Each part of the practice is equally important for the virtue of the company. Employees are the basic factors through which any company directly earns profit (Cameron, 2013). Thus, proper training and motivation for employees are necessary for companies. Employees can only be retained by treating them right and morally.
Furthermore, Vanwart (2015) added that the leadership practices can be effectively furnished with the help various theories of leadership. A leader should always favor for moral manager approach which deals which legal and organizational situations with appropriate actions (Vanwart, 2015). Ethical balanced decisions comprising self consciousness and awareness leads to Authentic Leadership. In addition to this, Spiritual Leadership is associated with emotional labor and effective leadership through inclusiveness, compassion and empathy towards employees (Vanwart, 2015). Thus, leadership emphasizing ethical values built a strong company that can narrow the competition in the market and affect positively in internal management of the company.
Therefore, it can be determined from the above Uber case that Travis needs a change model in its organization for effective leadership. Thus skill based model of Mumford’s group is best suited model to solve issues faced by the company to overcome its malign reputation as well as to address internal management problem significantly. As per Northouse (2015), skill model has five important components that is environmental influence, competencies, leadership outcome, career expectation and individual attributes. skill based leadership model delivers profound comprehension in enhancing overall ability of individual to judge and act wisely. It is three step based model consists of exploration of Individual Attributes, Competencies and Leadership Outcomes. The model also considers environmental influence and career experience of an individual (Northouse, 2015). In the first step Individual Attributes includes, firstly general cognitive ability that outlines general reasoning skill, perceptual processing, creative and divergent thinking capabilities along with information process and memory skills (Chemers, 2014).
In addition to this, Nohria, & Khurana, (2010) reports that general cognitive ability helps a leader to process the process the problem with its own wit and skill to handle the situation. Second is crystallized cognitive ability that comes with the experiences and knowledge gained by time to time. Third is motivation that yields commitment towards welfare of organization through own desire and passion to solve the situation ( Nohria, & Khurana, 2010). Forth is personality which improve the leadership performance in complicated organizational situation and help management to cope up with differences between employer and employee.
Figure 1. Mumford’s Skill Based Model (Northouse, 2015, pp.44)
In the opinion of Humlin et.al. (2014), skill model also focuses on competencies which comfort a leader to solve problem effectively. Creative ability of leaders aids them to solve complex problem and peculiar organizational issues (Humlin et.al. 2014). It prepares them to understand the root cause of the problem. Social judgment skills privileged them to append social system smoothly and acknowledge clearly about peoples behavior. It promotes changes in the organization and solves issues together as a team (Humlin et. al., 2014). Whereas, knowledge adds the ease in implementing the changes in the organization efficaciously. All the facts and external information about the world make a leader aware about the advantages and disadvantage of any action.
Moreover, Northouse, (2012) says that skill based model will result in effective leadership outcome that will be focused on the problem solving satisfactorily as well as optimum performance with better end product (Northouse, 2012). This leadership model will satisfy the employee retention problem as well as social damage recovery. Thus Uber will be benefited maximum by its implementation. Uber has a problem with solving problems with its employees as drivers are not happy with the employer’s behavior and management.
As per the view of Matteson & Irving (2006) skill based model deals with learning and creating leadership skills of an individual. It is a self improvising model to solve the problems of the organization however, it does not employs consideration for team member and to identify there individual strengths and weaknesses which can be more motivational and rewarding to the organization (Matteson & Irving, 2006). Thus the behavioral model of 3 steps will be implemented in this situation conveniently. The action oriented model will help Uber to cover all of its problems and issues in one round.
Besides this, Roe (2017) discusses that behavioral theory of leadership is closely related to the skill management and extemporize the ability to control and manage the organization constructively. Therefore, he emphasized on a persons skill development in three different areas which is conceptual, technical and human. These three areas are the key of behavioral theory of leadership that connects the dots between the employees and employers and make them work together as an organization considering all internal and external factors (Roe, 2017). Roe also proposed Action oriented theory that strengthens leadership skills through behavioral model in three steps implementation that is task, team and individual.
Miner (2015) explains further that implementing this task function in three steps will augment the analysis and handling ability of a leader in every single level. It entails vision, endeavors, rational and provides direction to the organization. It endows leader to determine the process system and about people in the organization. It also helps leader in planning, setting standards, timing and quality of tasks along with distributing responsibilities and reporting parameters (Miner, 2015). Team function will focus on the performance and behavior standards. It will draw acknowledgment related to strategies for solving conflicts, disagreements and struggle faced by groups. Individual function will promote the review of each team member as an individual. In this function leader establish connection with each team member and identify their strengths and weaknesses (Miner, 2015). Leader will praise efforts and motivate them for future.
Uber needs to handle its employees with more respect and delicacy. Thus problems related to their driver’s day to day life should be considered more prominently. According to business magazines and interviews it has been investigated that taxi drivers are dealing with issues related to commission and maintenance of their cars. Thus, Uber can open some repairing shops and car washes in the major cities services free only for target achievers as a motivation (Johnson, 2017). Moreover, some discounts for regular good and loyal drivers. This will help them in cutting their cost and earn more money. Commission cost can also be adjusted earning less but giving value to their precious employees.
Along with this, sometimes change in culture is very important to promote the healthy environment in the work. Saeed (2014) demonstrates that the cultural intelligence is also essential for a leader. The cultural environment determines the behavior of the employees as well as it affects the ultimate customer. Therefore, culture analysis is significant and time to time changes are also required. Uber has a policy to not to accept tips as it create friction. But it can be deep assistance for drivers (Johnson, 2017). Uber can start tip services for their drivers which can boost their regular salary and help them in various ways. This service is already in function by Lyft that allows their customers to tip. Furthermore, to plunge and handle the sexual harassment cases, some kind of punishment or strict action is exigent (Johnson, 2017).
Additionally, Doci et.al. (2015) describes the concept of behavioral response of a leader which can be Active as well as Passive in nature. The Active nature refers to adoptive and proactive behavior in which leader listens to employees problem and respond to situation positively. Whereas Passive nature is associated with avoidance of the current situation (Doci et.al., 2015) . In case of Uber company, Travis should respond in active or proactive behavior mostly. Employees in Uber have many issues which can only be sought out, if listened and acted carefully. This will also improve the overall image of company and living standard of company’s employees.
Figure 2. Conceptual Model of skill based leadership
(Roe, 2017, pp. 52)
In the end, above issues can be resolved with the help of behavioral leadership theory that focuses on skill nurture of leader and focusing on almost all the internal and external factors to solve the organization problem. Leadership is highly based on the personal traits of the leader whereas, it is extremely influenced by the external environment as well (Matteson & Irving, 2006). These problems can only be overcome by the time and experience of leader. Hence, it will direct the outcome in the favor of overall organizations goodwill and profitability.
References:
Cameron, K. 2013.Practicing Positive Leadership: Tools and Techniques That Create Extraordinary Results. Berrett-Koehler Publishers.
Carlson, B. 2017. Retrieved 05 April, 2017, from https://www.businessinsider.in/travis-kalanick-is-ubers-biggest-asset-and-now-its-biggest-liability/articleshow/57359684.cms
Chemers, M. 2014. An Integrative Theory of Leadership. Psychology Press.
Dóci, E., Stouten, J., & Hofmans, J. 2015. The cognitive-behavioral system of leadership: cognitive antecedents of active and passive leadership behaviors. Frontiers in Psychology, 6, 1344.
Hemlin, S. et. al. 2014. Creativity and Leadership in Science, Technology, and Innovation. Routledge.
Johnson, M. 2017. Retrieved 05 April, 2017, from https://www.zacks.com/stock/news/248328/who-are-ubers-biggest-competitors
Kalman, F. 2017. Retrieved 05 April, 2017, from https://www.talenteconomy.io/2017/03/09/what-ubers-ceo-leadership/
Lashinsky, A. 2017. Retrieved 05 April, 2017, from https://fortune.com/2017/03/02/uber-ceo-travis-kalanick-driver-advice/
Matteson, J. A., & Irving, J. A. 2006. Servant verses Self Sacrificial Leadership: A behavioral comparison of two follower-oriented leadership theories. International journal of leadership studies, 2(1).
McCormick, R. 2017. Retrieved 05 April, 2017, from https://www.theverge.com/2017/2/28/14772424/uber-ceo-travis-kalanick-profound-apology-leadership-help
McGregor, J. 2017. Retrieved 05 April, 2017, from https://www.washingtonpost.com/news/on-leadership/wp/2017/03/01/ubers-ceo-says-i-need-leadership-help-what-should-it-look-like/
Miner, J. B. 2015. Organizational Behavior 1: Essential Theories of Motivation and Leadership. Routledge.
Nohria, N., & Khurana, R. 2010. Handbook of Leadership Theory and Practice. Harvard Business Press.
Northouse, P. G. 2012. Leadership: Theory and Practice. SAGE.
Northouse, P. G. 2015.Leadership: Theory and Practice. 7th ed. SAGE Publications.
Roe, K. 2017. Leadership: Practice and Perspectives. Oxford University Press.
Saeed, T. et. al. 2014. Leadership styles: relationship with conflict management styles. International Journal of Conflict Management, 25 (3), pp. 214-225.
Vanwart. 2015. Dynamics of Leadership in Public Service: Theory and Practice. M.E. Sharpe.
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