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Management Theory and Practice Essay

   

Added on  2020-05-16

12 Pages4135 Words188 Views
Running Head: MANAGEMENT 1Management Theory and Practice:Ethical Dilemma at Uber Inc.

MANAGEMENT2Introduction Each and every organization has its unique behavioral processes and characteristics. Anorganization develops its corporate culture by incorporating its different values and ethics.Ethical dilemma is a trait that is found in the organization and it has clear connection with moraldilemmas. In a company, ethical dilemma leads the human resources to make wrong decisionsbecause of difficulties. Specifically, ethical issue arises when an employee has to distinguishbetween immoral and moral act. For an organization, it is very important to find the moralitywhile making the decisions on the basis of significant aspects of business. There are variousorganizations, which have faced different ethical dilemmas. These ethical dilemmas haveadverse impact on image and reputation of firm and its business processes (Braswell, McCarthy,& McCarthy, 2017). The major objective of this essay is to analyze the ethical dilemma that is faced by UberTechnologies Company. This essay provides brief discussion about the Uber Company that isengaged in ethically wrong doings with its employees. It also includes some theoretical conceptsof management ethics, which can be used to examine the ethical issues. Moreover, it discussesthe impact of these concepts on managerial practices of Uber. At the end, it describes leadershipdecision making concepts, which can be considered by Uber to ensure integrity and morality oforganizational decisions. Ethical Dilemma Faced by organization and Theoretical Aspects Uber Inc. is an American Organization that is offering transportation services and operating itsbusiness in more than 630 cities. Since its establishment in 2009, the organization is connectingtransportation industry with the information technology through its mobile application (Elliott,2015). According to the recent data and figures, the brand value of Uber Company is more than ataxi service provider in America and all over the world. Under its operations, the drivers run theirown cars or they can take a cab on rent. Uber offers very easy, convenient and affordable rides tothe people, so that can arrive to their location safely. In addition to transportation services, theorganization is offering online food delivery services to its potential customers (Casadesus-Masanell, Makenzie, & Didiomov, 2015). One of the unique characteristics of organization isthat they offer its services through mobile application. The organization is constantly looking for

MANAGEMENT3different ways to renovate its services and expand the range of vehicles. In this industry, themajor competitors of the company are Lyft and Sidecar, which are also operating their businesseffectively. Further discussing about the ethical issue that is faced by Uber Inc., it can be noticed that thereare various issues, in which this organization has involved. For example, one of the major issuesis the scandal, in which Uber’s top management has dismissed over 20 employees due to case ofsexual harassment. In Past few years, it has been noted that the people of organization areinvolved in harassment doings with the colleagues (Crane, and Matten, 2016). Recently, a formerSusan Fowler revealed to the media that she was assaulted sexually by a co-worker. Anotherethical dilemma, which was the part of Uber’s business processes and operations, is thatorganization adopted a contractor relationship with its drivers. The major issue is thatorganization is breaking the rights of its drivers by considering as them drivers, not like realemployees. Due to contractor relationship, the employees were unable to access and enjoy mostof their rights being employees. A case of unfair dismissal was filed against Uber Inc. bydisabled drivers, who thought that these practices of company are not justified (Yoo, 2017). Uber believed it very innovative that it didn’t call its drivers as employees as they are known asits drive-partners of company. Due to this, drivers feel isolated and don’t have family-likerelation with the organization. According to Fair Work Commission, contractor relationshipshould not be implemented by Uber’s management because this practice is beneficial for theorganization, but it neglects the rights and interests of company’s employees. This is the majorreason behind the ethical dilemma, faced by Uber Technologies and it is related to its employeemanagement process. Thus, this is one of the major situations, where Uber Organization hasfaced the ethical dilemma (Chikweche, & Fletcher, 2013). Due to this, the drivers were verydisappointed and Rideshare Drivers Association of Australia filed a case against Uber on behalfof drivers. This ethical dilemma leads its drivers to lower morale and they lose their loyaltytowards Uber as they are not employed on permanent basis. The firm has received several drivercomplaints; this indicates that other competitors have a chance to acquire the services of thesedrivers. This movement of other organizations will impact the brand image and revenues of UberInc. This above mentioned ethical dilemma positions Uber’s competitors such as Lyft in a

MANAGEMENT4competitive position to stay in market as it improves the screening of drivers and make sure theyare maintaining high ethical standards on service (Clegg, Kornberger, & Pitsis, 2015). To deal and examine this ethical dilemma of Uber, different ethical theories can be used. Theseethical concepts assist a company to handle this type of ethical issues. Every organization shouldfollow these theoretical aspects of management ethics to overcome ethical dilemma (DesJardins,and McCall, 2014). Each and every person, who is connected with organization directly orindirectly, is known as stakeholder. Thus, the situation of company can be examined usingstakeholder theory. According to stakeholder theory, a business or organization should focus oncreating the value for its both internal and external stakeholders (Ferrell, & Fraedrich, 2015).Under the term “stakeholder”, it includes employees, customers, suppliers, shareholders,communities etc. The idea of this theory states that the top managers of organization have theresponsibility and duty to maximize the interests of its all employees in a manner, which ispermitted by social and ethical values. This theory states that it is the social responsibility ofUber to supervise and take care of its drivers. It should investigate all the information about thedrivers. The company needs to be cautious about how they can work in the interests of its driversby considering them employees. This theory states that if the company will not take theresponsibility for its drivers and society, then it may face the decline in business in long run(Harris, 2014). From this analysis, it can be stated that Uber is failed in stakeholder engagementwith its drivers. Complying with this theoretical aspect, the company will be able to consider thedrivers as employees and develop the strategies for effective management of drivers’ interests. In the case of Uber, Right Theory of Management Ethics can be used for examining the issue,because this theory can be effective in unfair treatment with its drivers. By considering anotheraspect of management ethics i.e. rights, it can be stated that rights are the privileges, which aperson receives while employed by an organization. There are certain rights, which are given byorganization, when a person works in an organization by becoming its part (Huddleston, 2014).For example, employees get the power to use their human rights as they are living in thecommunity. These human rights are the fundamental rights, which an individual always have.Moreover, these rights assist the employees in saving themselves, while working with anorganization.

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