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1. Case Study No other city is as defined by its transport system as London, with its red buses, black cabs and tube trains instantly recognised the world over. Transport for London manages the city’s buses, the Tube network, Docklands Light Railway, Overground and Tramlink. It also runs Barclays Cycle Hire, London River Services, Victoria Coach Station, the Emirates Air Line and London Transport Museum. Likewise it controls 580km network of main roads, all of the city's 6,000 traffic lights, London’s Congestion Charging scheme and is responsible for the regulation of taxis and private hire vehicles. Around 24 million journeys are made every day across its network. The Organisational Context Virtually everyone who visits, lives or works in London will use one of our services and every one of those journeys matters to us. We are here to keep London working and growing, and to make life in the Capital better. But a rapidly growing population means achieving this goal is more challenging than ever. Currently, 8.4 million people live in the Capital. This is expected to become 10 million in the 2030s. We must carry on supporting this growth if London’s success is to continue. We have to balance delivering our services with one of the biggest savings and efficiency programmes in the public sector. Our success depends on Government support through grants and borrowing, our fare payers, developing our commercial income and achieving our efficiency targets. How we work … Our Commissioner reports to our Board and leads a management team which is accountable for the daily running of the organisation and the work of more than 25,000 employees. How we are organised … There are three units, each with responsibility for different aspects of the organisation:  Surface Transport  Rail and Underground  Crossrail We are funded from six main sources …  Central government (agreed to 2014/15 following the 2013 Spending Review)  A proportion of the growth in London’s business rates  Income from fares and the Congestion Charge scheme  Prudential borrowing (the amount and profile of which also forms part of our settlement with central government)  Commercial development in our estate, including advertising and property rental and development  Third-party funding for specific projects Efficient and effective business operations … We are committed to an ambitious cost reduction programme covering all areas of the business. The savings target is continuously reviewed as further efficiencies are identified. We have refreshed our savings programme to provide clear and challenging targets. These include continuing savings from the previous plan and a new savings programme that will further reduce our costs. We are facing a £225 million cut to our annual operational budget from 2016. Commercial development … We have extensive assets, and with more than 3.5 billion passenger journeys every year, access to a huge customer base that is forecast to continue increasing for the foreseeable future. The growing density of London’s population will make transport hubs more important and valuable. With this combination of locations, audience and a world-recognised brand, we are exceptionally well placed to generate non-fare income. Through our commercial development programme, we are working to take advantage of these substantial opportunities, prioritising the biggest opportunities while looking for further means to generate more income. These include selling property no longer required for operations, and innovative new retail developments. Risk management … In implementing the Business Plan, it is our duty to understand possible risks and ensure appropriate actions and resources are in place to manage them and mitigate any possible impact. Strategic risks are managed through the annual business planning and associated in-year reporting and monitoring processes. The Mayor’s Transport Strategy The ‘Mayor’s Transport Strategy’ was published in May 2010. It sets out his vision for London’s transport infrastructure and details how we will deliver the plan over a 20-year period. The strategy is a vital part of a wider project to support and shape the Capital's social and economic development. One of the specific changes that is proving to be highly controversial is the proposed automation of tube ticket offices. The proposal is that mobile units of supervisors will replace staff at stations outside zone one in an attempt to move to full automation of ticket sales and make cost savings of around £50 million. However the changes are not just about cost savings. A series of initiatives have been announced including 24 hour tube operation, contactless bank card payment technology, extended Wi-Fi coverage at underground stations, improved ticket machines, more staff to be available on platforms together with improved retail services at stations including ‘click and collect’ points in partnership with leading retailers. It should be noted that the proposed changes were leaked before an official communication from London Underground was released. Comments from Key Stakeholders "This is just the first stage in an opening up of the tube network to become 24 hours. For 150 years the Tube has been the beating heart of London, its tunnels and tracks providing the arteries that have transported millions of people and helped to drive the development and economic growth of our great city. Now it is time to take the Tube to the next level and so for the first time in London's history, we will provide a regular 24-hour Night Tube service at weekends. This will not just boost jobs and our vibrant night-time economy, it will further cement London's reputation as the best big city on the planet to in which to live, work, visit and invest.' London Underground will now go into a 90-day consultation on its proposals but says there will be no compulsory redundancies and has promised that every member of staff who wants a job and who is "ready to be flexible" will have one. It is absolutely outrageous that London, the motor of the UK economy - now contributing 25 per cent of GDP - should be held to ransom by this tiny minority going out on strike. We are talking here about an essential public service, on which millions depend for their livelihoods.” Boris Johnson (London Mayor) "Next week's Tube strike is unjustified and unacceptable. It will hit millions of families across the capital and cause chaos for businesses. We need a modernised Tube line working for the millions of Londoners who use it every day. The fact is only 3 per cent of transactions now involve ticket offices to it makes sense to have fewer people in those offices but more people on the platforms and the stations. So I unreservedly condemn this strike. Ed Milliband must make clear he condemns this strike without reservation.” David Cameron (Prime Minister) “The Tube has a proud history of innovation which has been at the heart of London’s development. But that sort of dynamism is put at risk by the five days of pointless strikes called by the RMT leadership. We built the world’s first metro 150 years ago, operated the first automated trains on the Victoria line in the Sixties and introduced the world’s most successful smartcard, Oyster, at the start of this century. As London has constantly changed, so has London Underground. This must continue if we are to keep pace with the modern world. In fact, there is no other choice. The success of Oyster, for example, means that less than three per cent of all journeys now involve a ticket office. This will fall even further when the option to use convenient contactless payment is introduced later this year. Safety and security will never be compromised. Ticket office staff do not control safety and security. Station supervisors and control rooms do that, and this will continue. We cannot force customers to keep paying for a service they don’t use any more. These changes will save £50 million per year — which we will reinvest in more frequent and reliable services, airconditioned trains, rebuilt and more accessible stations and wi-fi across the network — and the Mayor can continue to keep fares down. I am determined that we implement this change fairly, respecting our hard-working Tube staff. We have listened to them and changed our proposals to reflect their views. We have guaranteed that no staff will be forced out of the Underground, there is a job for every member of staff who wants one; no supervisor need re-apply for their job, and no one will lose pay. What other employer is offering such guarantees today? Given these commitments and the radical improvements we will deliver, London is asking why the leadership of RMT is threatening to inflict five more days of strike action and disruption on passengers. I am asking that same question. London Underground has always embraced modernisation, innovation and change. A strike only disrupts London and takes pay from RMT members. The union should continue to work with us to shape the future, as other trade unions are doing. People are at the heart of this vision - our customers and staff. My commitment to London is that all Tube stations will continue to be staffed and controlled in future, with more staff visible and available to help customers buy the right ticket, plan their journey and keep them safe and secure. We will continue to make the Tube more accessible and provide assistance at stations for all our customers who need it.” Mike Brown (Managing Director London Underground) “The reality is these people (those that could lose their jobs) don't just sit behind glass and sell tickets. They are competent people that can get people out in the event of an evacuation, not just a terror attack, a signal failure, a line closure or station closure. The proposed ticket office closures will result in around 950 job losses.” The Late Bob Crow (Former General Secretary for the RMT Union) London Underground has announced the closure of ALL ticket offices by as early as 2015 and the subsequent loss of 750 jobs. Despite this Government’s and the Mayor of London’s claim they wish more use of public transport they are cutting LU’s budget by £33m for 2013-14, and £45m for 2014- 15. And this despite January’s 4.2% increase in fares across the tube, buses and trams. London Underground have dug themselves into an entrenched position and have refused to move one inch from their stance of closing every ticket office, in breach of the agreement reached previously through ACAS which enabled us to suspend the previous round of action and in flagrant violation of repeated promises from the London Mayor Boris Johnson that not a single ticket office would be closed on his watch. It is scandalous that Transport for London are blowing what we estimate to be hundreds of thousands of pounds on politically-motivated adverts and propaganda designed to deflect attention from Boris Johnson's broken promises. The RMT could have recommended the suspension of this strike action if LU had responded positively to our proposal to halt the ticket office closures and job cuts, stopping the dire impact they would have on the length and breadth of London Underground. As a consequence of the management stance, and the broken promises of Boris Johnson, the action has gone ahead and is solidly supported. The RMT will fight these plans with every tool at our disposal and that includes political, public and industrial campaigning on an unprecedented scale. The proposed cuts will decimate staffing levels and hit the most vulnerable users of Tube services. The Mayor must believe he is some sort of magician if he thinks he can slash a thousand jobs and still run safe services when everyone knows that staffing has already been cut to the bone while passenger demand continues to rise. Throwing in the plan for night time operation at the weekends is just a smokescreen to try and camouflage the real issue which is a savage cuts to jobs, access and safety. The RMT remains available for serious and meaningful talks around our alternative proposals.” Mick Cash (Acting General Secretary for the RMT Union) “He is the hypocrite of the decade. It beggars belief that the Mayor, who was elected in 2008 on a pledge to keep open every ticket office, is now planning to close every single one, with all that means for safety and jobs. We shall be launching a joint campaign with Labour to reverse this decision. If you believe that you can make these staff cuts and keep stations staffed then you must still believe in Father Christmas. We want no more stunts or PR baloney from Boris. No more talk of a secret army of volunteers marching to London's rescue. We want serious and detailed talks on our genuine fears for the safety and security of passengers and staff under these far-reaching plans. If that happens, I believe we can reach a settlement that will avoid next week's 48-hour walkout.” Manuel Cortes (Leader of the TSSA Union) “I think it's wicked. They do it in Berlin and it makes going out so much easier. If you go out till one or two you are stranded and night buses aren't great. We went to Berlin on holiday and you didn't have to worry about the buses.” Charlotte Lindsey-Cook (Student) I don't use the Tube at night but my kids do. I think it's probably a good idea. We used to live in Hong Kong and they had night stuff happening much more than here. It's good to know your young people can get home safely.” Helen Stansfeld (Housewife) I don't go out much because I've got kids but when I did it was a case of 'how do you get home?'. It would be good for safety. One night I had to wait for a night bus in a not-so-nice area. Running Tubes at night will make it safer and quicker to get home safely. Sam Olaleye (Shop Worker) I think it's a good idea. London is a 24-hour city so why can't the Tubes be? It should have happened years ago. I've never known why London doesn't when the clubs are all licensed to 2, 3 or 4am. The people I drive don't generally take the Tube. If they come into London at the weekend I'll be driving them. Tim Ednie (Chauffeur) I think you will have more independence. When I go out I have to take the bus. I live in the south so it's faster to get to the centre of London on the Tube. I think it might make things more dangerous though because people will be drunk and there might be strange people on the Tube. There are good things and bad things. Patricia Armario (Au Pair) "It's not good because I don't know where I'm going half the time. I've not really got a clue but for regulars I suppose it wouldn't be a problem." Garvie Gay (Occasional Commuter from Bedford) “Tonight’s strike is indefensible. It is against the modernisation of the Underground to prepare it for a cashless, driverless future. Today’s passengers can handle machines and cards. A hundred million passengers a year use driverless trains in Docklands, as others do in Paris, Barcelona, Tokyo and elsewhere. What passengers do want is security and assistance on concourses and platforms. And they want all-night trains. Staff must come out from their offices and engage with the customers.” Simon Jenkins (Journalist) Typical Comments on Twitter and Facebook … “Bob Crow is a militant xxxxxxx ... who will strike at the drop of a hat. Does he lose his pay? I DO NOT THINK SO?!” “Bob Crowe- once again being a complete idiot …” “Why? They are not creating sympathizers by doing this. Try getting to Uxbridge without the Tube working on full blast is a nightmare …” “This photo doesn’t bode well for your argument that ticket offices should stay open.” The worker was sitting behind a glass screen with a sign in front which read: ‘Information only. Please use ticket machines.’ “Boris has had five years to talk with Crowe, these two egotistical idiots are responsible for what has happened. Johnson promised in 2011 that ticket offices would stay open, if he has changed his mind, wouldn't it be sensible to broker a deal by talking with the Unions whose members would be affected? Jaw is better than War!” “Time does not stand still and changes do occur but it is important to manage these changes. When you are dealing with an employer and trade unions, who can you believe, as both are steadfast to their own beliefs and opinions? But who benefits from a strike, the workers on strike lose their pay and the employers suffer a loss of revenue and all customers are greatly inconvenienced. The unions may win a little concession here and there, but eventually the outcome will favour the employer, the concessions will only delay the final outcome. When employers and the employee’s representatives cannot agree, there should be compulsory independent arbitration, which should be binding on parties, which would make it un-necessary for strikes to be required.” “What we must all do as customers of the world’s oldest underground train network is try to empathise with the hard-working people who will be affected by change. We must never take for granted how lucky we are to have a job that we enjoy. However, the reality is that nothing lasts forever. Change is something we must all live with. Doing nothing is not an option.” “The RMT doesn't have the clout it used to have after nearly 90 per cent of the usual number of Oyster cards was used in London today. Londoners have voted with their feet and their Oysters cards and that’s a big wake-up call for the RMT.” “Let them strike and carry on striking. The unions must be taught that they will no longer be tolerated. Ignore their tantrum.” End of case study 2. Student Task Part 1 You are required to produce a report on the proposed closure of the ticket offices within London Underground using Huczynski & Buchanan’s model of ‘The Terrain of Organisational Behaviour’ (see below) as the framework for your report. (Huczynski and Buchanan, 2012) Your report should include the following: a. A discussion of the key external factors (PESTLE) underpinning the need to close the ticket offices. b. A discussion of the key internal factors (Individual, Group, Structural and Management Processes) underpinning the reaction of the key stakeholders. c. A discussion of the impact of the organisation’s past, present and future on this situation. Part 2 What feedback would you give Boris Johnson and Mike Brown to enable them to avoid strike action in future change management programmes? Your feedback should be based on what they could do differently in future change management programmes. Structure of your Report You should structure your report as follows: a. A title page b. A contents page c. Introduction d. Main Body e. Conclusion f. Recommendations g. Reference Listing h. Appendices (if applicable) i. Word Count

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The decision by Transport for London (TfL) management to close the ticket office follows the need to modernise the transport sector by introducing automated tickets acquisition systems. However, the members of the RMT London seek to oppose the adoption in an attempt to protect their employment. Notwithstanding the continued actions, including the strike to reverse the action, the Transport for London has remained adamant not to abort the proposed changes.
Lack of consensus has led to inefficiency, lost work hours, and mayhem among the 25,000 employees working in the organisation. This report examines the internal and external confounding factors that influence the positions of the parties, explores the impacts of the organisation’s past, present and future, and offers recommendations to the disagreeing parties...

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