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Running Head: Human Resource Management 1Human Resource Management
Human Resource Management 2Executive Summary The present report discusses the human resource issues in Uber, a cab sharing service. The organization has developed a unique business model in which it provides cab sharing serviceto the cab drivers. However, it does not recruit the drivers in the organization and hire them as independent contractor. Therefore, the organization does not provide them with adequate employment rights. The present report highlights the issue in hiring drivers as independent contractors. The report has highlighted issue and related them with different theories related to the employment right. It has also provided recommendations so that the organization can provideadditional benefits to different employees.
Human Resource Management 3IntroductionThe human resources are the most vital resource of a business organization. Therefore, businesses follow several strategies so that the human resource develops in the organization and amplifies its productivity. It is important for a business organization to establish policies, rules and strategies so that the employees remain satisfied with their workplace. The employee satisfaction reflects on their productivity and performance at the workplace. As a result, business organizations implement several policies such as employee flexibility, work-life balance so that the employees can be more productive at their workplace (Manzoor, 2012). However, there are still several challenges for the human resource management of an organization. In this regard, thepresent essay will discuss the human resource challenge encountered in Uber, a cab sharing service. The essay will discuss the issues posited by a news article regarding the unfair treatment with the taxi drivers. Discussion of the NEWS ArticleUber is an innovative business organization which is based on the concept of sharing economy. Ithas adopted a unique business model wherein the organization establishes partnerships with the cab drivers. The taxi or the cab drivers download the mobile application of the organization and avail a large number of rides. In lieu of availing the facility, the drivers pay a commission to the organization. It can be critiqued that the organization does not recruit driver and hire them as business partners. This policy of the organization protects it from government legislations relatedto the employment rights. As the organization is establishing contracts with the drivers, it is not obliged to provide several employment t rights such as pension, remuneration or to provide employment guarantee to these drivers. With this unique model, the organization has established contract with majority of the drivers in the country. The company is doing fairly good and has established strict policies for the recruitment of the drivers. The organization terminates the contract with the employees who do not behave well with the customers. Recently, the organization has terminated a few contracts; however in spite of the fact that it does not provide employment, it has provided compensation to the employees (Yoo, 2017). The most probable cause for providing compensation to the employees is that the organization wants that its relationship with the driver is not officially tested. Key Human Resource Issues raised in the ArticleThe article has highlighted the human resource issues associated while working in Uber Corporation. The organization recruits drivers as independent contractors so that it does not haveto follow the government legislations related to the employment guidelines. The drivers work independently for the organization and they spend a large amount of time driving for the organization. The business organization is also obtaining profits from the services of the driver. Therefore, the relationship between the drivers and the organization is that of employment. Sincethe drivers work for the organization, their safety and security should also be assured by the
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