Uber's HRM Challenges and Solutions

This assignment analyzes the challenges Uber faces due to its inadequate implementation of Human Resource Management (HRM) practices. It highlights how these issues negatively impact employee retention and the company's brand image. The document proposes solutions for Uber to adopt effective HRM strategies, emphasizing fair treatment of employees as a crucial factor in organizational success.

BUSINESS REPORT

TABLE OF CONTENTS
Describing the new story.............................................................................................................1
Identifying the key human resources issues ...............................................................................1
Remedies for unfair dismissal laws.............................................................................................3
RECOMMENDATION...................................................................................................................4
REFERENCES................................................................................................................................5

Describing the new story
At present it is reported that Uber in Australia is subsiding unfair dismissal lodged
against it by deactivated drivers who have felt their exile was unjustified. Further it is identified
that Uber does not consider its' drivers as an employee. The fair work commission is completely
avoided by Uber as terminate its driver without any reason. In the month of April case was filed
by the Rideshare Drivers Association of Australia on behalf of drivers. It has been observed that
they were facing many issues such as they are provided with an undisclosed sum after
negotiations. Uber drivers being the "highest rate drivers" does definitely not deserved this type
of behaviour. It has been observed that the drivers are getting fired from the organisation without
any justified reason (Zhang, Zhang, and Fan, 2017). This unfair dismissal creates numerous
problems to the drivers and their families. This thing has long term impacts upon the financial
condition of nation. Further, the rate of unemployment people is also increasing because of this
factor. Health and safety, occupational, etc. are not being considered by Uber towards its drivers.
The employees laws are not being followed by the entity which is putting adverse impacts upon
the job role of the employees.
Identifying the key human resources issues
 The human resources issue which are identified in the present story is as follows
 Australia Uber does not consider its derives as an employee.
 Further, company is not paying minimum wages to employees as per the rules and
regulations
 Derives are terminated without any justified reason
Human resources are very important resources in an organisation as they play significant
role in order to achieves goal of the organisation (Tzabbar, Tzafrir and Baruch, 2017). It is
important for an organisation to adopt human resources practices so that manage all the human
resource, retain employees for longer time and increase the productivity. It assists organization in
accomplishing the goals and objectives successfully.
There are different models which can be applied in the context of the managing the
human within the organisation. Human resource management is one of the most important
considerations of almost all type of organisation where the HRM bodies are mostly concerned
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about an effective management of personnel’s. For which, they are hereby required to consider
enormous aspects of work for a proper management of their human resources. Considering the
present state of Uber, they are presently referred to have a very unmanageable state of work
where they are together suffering from varied criticising factors creating a negative impact on
their image. This is mainly due to some uncertain factors at work where they are together not
referred to follow a defined structure for managing people at work.
There exist various HRM models that are known to assist to a great extent. This is
specifically in context to the management of people at work where the Harvard model is one of
the most renowned model helps in a comprehensive administration of tasks by suitably managing
the people. This model consists of total 6 HRM components that are critical in nature. This is
specified to be a dimensional model of HRM where stakeholders, situational factors, interests,
HR outcomes, HRM policy choices, long-term consequences and a feedback loop where its
output flows straight away transfers to organisations like Uber and its stakeholders. This model
is advantageous for Uber to understand the actual needs of their stakeholders in order to satisfy
the same. Through this, they can also get rid of the criticisms faced by them in context to their
positioning in the market.
There exists another famously known model created by two different researchers called
The Warwick Model. Herein, this model is known to centre around five distinct components
namely outer context that refers to macro environmental factors along with certain micro
environmental forces that come within the inner context of Uber. Another element comprises
with business strategy content by lastly defining the presence of both HRM context and content.
A foremost advantage of this model is its affluent interaction among so many factors that ease
off the organisations like Uber to align their both intrinsic and extrinsic settings to further attain
growth and prosperity.
As per the laws and legislation which are introduced by the government of Australia
should be implemented successfully within the organisation (Van Dierendonck, Lankester and
Rothweiler, 2016). Some of the laws and legislation are as follows such as fair work act 2009 ,
Fair work act 2009: According to this act it is important for the Uber company to pay its
employees minimum wages. Further under this standard basic hourly rates which is set by the
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Australian fair pay commission (Zhang, Zhang, and Fan, 2017). This act is implemented
for the welfare of employees within an organisation.
Work place health and safety act: It is an act which is frequently referred as an
occupational health and safety act which include migration of risk and assessment which can
impact the health of employees (Patel and Bhanugopan, 2017). This consider the safety of
customers, employees, contractor etc. There are some benefits of work place safety act that is
provided safe working environment which is legal requirement and critical for the Uber long
term success. It can increase the productivity of employees, minimise the cost of injury and
worker compensation and make sure that legal obligations it met by the firm (Connell and
Burgess, 2016).
The decision of dismiss of an employee is known as the area of employment relationship
and it required to realise the wider range of civil law and other responsibility of an employer.
Unfair dismissal law which is set out in the fair work act 2009 is applied on a large number of
Austrian workers and it provides protection to those employees who get terminated without any
signification reason. An individual who are cover under unfair dismissal laws is employees who
earn upto $122,400 excluding and retirement pension and incentive bonuses are included in the
unfair dismissal laws (Presbitero, Roxas and Chadee, 2016). This case are not taken into
consideration those who are casual employees, employees who worked for traineeship and
employees who work under contract. Further under unfair dismissal law an employer have not
right to dismiss its employees without any valid reason which is related with employees . Along
with this, if dismissal is connected with capacity then it may be still unfair if workers is not give
notification of the reason for dismissal. However, not provide opportunity to provide justified
reason or warning in different situations.
Remedies for unfair dismissal laws
A dismissal which is found unfair can lead to the worker can reinstated to the position
for which they were employed. Further it includes that the employee be appointed to Uber
company who dismiss an employee without any reason (Kaufman and Taras, 2016). Further the
reinstatement is ordered fair work Australia can place order for continuing the services which is
broken by the dismissal. Along with this Uber company also need to pay compensation for the
loss from which employees suffer.
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RECOMMENDATION
It is recommended that employees should know the laws and legislation so that they can
sue for any reason if employees are not treated fairly in the organisation. Along with this it is
important for the firm to introduce some laws and legislation for its employees welfare. Along
with this it is important to ensure that employees are recruited as per the laws and legislation.
Along with this, Uber company should not dismiss its driver without any valid reason. Further,
for accomplishing the success Uber company need to make good related with its employees and
treat them in fair manner so that their target can be accomplish on time. Further it recommended
that Uber company need to adopt HRM practices as because help in carrying out business
activities in an effective manner. Further human resources practices also help in providing
welfare and benefits to employees which help in retaining them for longer period of time.
Currently Uber is not using HRM practices effectively because of this reason she if facing
problem and its brand image get impacted. Therefore it is recommended that company need to
understand HRM practices and adopt it so that it can easily resolve all its issues. However it is
important for firm to ensure that employees are treated fairly as because they are important part
of an organisation.
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REFERENCES
Books and Journal
Connell, J. and Burgess, J., 2016. The quality of working Australia and its relevance for HRM
and organisational effectiveness in the Asia Pacific. Asia Pacific Human Resource
Management and Organisational Effectiveness: Impacts on Practice, p.171.
Kaufman, B. E. and Taras, D. G., 2016. Nonunion employee representation: history,
contemporary practice and policy. Routledge.
Patel, P. and Bhanugopan, R., 2017, January. Indian IT MNEs and the Transfer of HRM
Practices in their Subsidiaries in Developed Countries. In Academy of Management
Proceedings (Vol. 2017, No. 1, p. 12370). Academy of Management.
Phillips, K. and McKeown, T., 2016. Understanding Self-Employment: The Opportunities and
the Challenges for Good Policy. Government, SMEs and Entrepreneurship
Development: Policy, Practice and Challenges, p.157.
Presbitero, A., Roxas, B. and Chadee, D., 2016. Looking beyond HRM practices in enhancing
employee retention in BPOs: focus on employee–organisation value fit. The
International Journal of Human Resource Management. 27(6). pp.635-652.
Sappideen, C., O'Grady, P. and Riley, J., 2016. Macken's Law of Employment.
Tzabbar, D., Tzafrir, S. and Baruch, Y., 2017. A bridge over troubled water: Replication,
integration and extension of the relationship between HRM practices and
organizational performance using moderating meta-analysis. Human Resource
Management Revie., 27(1). pp.134-148.
Van Dierendonck, D. and et. al., 2016. Linking HRM Practices and Institutional Setting to
Collective Turnover: An Empirical Exploration. Administrative Sciences. 6(4). pp.18.
Zhang, M. M. and et. al., 2017. Subsidiary responses to the institutional characteristics of the
host country: Strategies of multinational enterprises towards hukou-based
discriminatory HRM practices in China. Personnel Review. 46(5). pp.870-890.
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