Managing People & Organization - Uber Case Study

This report discusses in relation to managing people and organization in an effective efficient manner. Every organization faces certain issues and problem in running their business in the era of the competitive environment. As in, this assignment is observed that Uber X CEO Travis Kalanick hindered Uber’s performance due to his management missteps which resulted in mistrust from customers, investors, drivers and regulatory agencies, and staff criticisms.

RUNNING HEAD: MANAGING PEOPLE & ORGANIZATION 0
UBER CASE STUDY
Managing People &
Organization - Uber Case
Study

UBER: MANAGING ORGANIZATION & PEOPLE 1
Executive Summary
Uber innovations Inc. is a worldwide transportation innovation organization. Its headquarter
is in San Francisco, California, in the United States of America. The company was set up as
Ubercab in 2008 after its promoter Travis Kalanick and Garret Camp went to LeWEB in
Paris. They got the possibility of developing the application programming for taxi
transportation after they were rained on and could not discover a taxi to drive them to the
airport. The thought was introduced by Garret who takes and expressed the possibility of
Ubercab. There were numerous problems in the running of the organization which we will be
going to see about in this report.

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Table of Contents
1 Introduction........................................................................................................................2
2 Identified issues and problems...........................................................................................4
1.1 Problem........................................................................................................................4
1.1.1 Bad Public Relation and Marketing.....................................................................4
1.2 Problem........................................................................................................................5
1.2.1 CEO is shouting over diminishing pay................................................................5
1.3 Problem........................................................................................................................7
1.3.1 The revelation of sexual harassment....................................................................7
3 Discussion..........................................................................................................................8
4 Recommendation................................................................................................................9
5. Conclusion............................................................................................................................11
6. Bibliography....................................................................................................................13
7. Appendix..........................................................................................................................17

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1 Introduction
This report discusses in relation to managing people and organization in an effective efficient
manner. Every organization faces certain issues and problem in running their business in the
era of the competitive environment. As in, this assignment is observed that Uber X CEO
Travis Kalanick hindered Uber’s performance due to his management missteps which
resulted in mistrust from customers, investors, drivers and regulatory agencies, and staff
criticisms. Various management problems were generated in the path of uber which will be
going to discuss in this report by applying various management theories. This report will also
be emphasizing on problems and challenges which are occurring in the Uber organization and
ways of dealing with them.
“Where lifestyle meets logistic” Slogan which would be spoken no sooner by every traveling
worker who does not have a vehicle. Uber Technologies is an accessible transport network
corporation which is headquartered in San Francisco, Calfornia, United state. Uber was
founded by Garret Camp and Travis Kalanick. The transportation services are accessible in
66 countries over 507 cities worldwide (Hartmans & Mcalone, 2016).
However, in just 2 months, 3 main events are currently resultant in the organization to be
seen in an adverse condition. These actions have been affecting individual opinion regarding
Uber (Levin, 2015).
Uber has revealed constant progress, with net income of about $5.97 billion in 2016. Though,
the organization is also been bearing enormous losses in previous ages and had losses of $3
billion at the end of 2016 (Appendix 1). Uber core business is to offer a marketplace for the
ride-hailing facility sustained by point-to-point software skill and cell phone apps, linking
drivers and passengers. In the past few years, Uber is going through serve reputational
problems that are straightly linked to a number of scandals which are mainly recognized to

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the former administration of the company environment. So, to cope up with such type of
difficulties in the organization various theories related to Values and attitudes, managerial
communication, managing behavior, managing diversity, managing groups and teams will be
applied.
2 Identified issues and problems
The main corporate problem facing by uber is bad leadership. Even though the organization
has achieved to grow extremely over the years, but it has been criticized for the way it treats
employees. According to the employees they are incapable to raise their difficulties to the top
management. As of now, Uber has been extremely evaluated for 3 cases in an era of just 2
months.
1.1 Problem
1.1.1 Bad Public Relation and Marketing
Uber was existing in a public relation & marketing nightmare, together with claims of the
wrong hold of user data, and thieving intellectual property from a Google spin-off. Links to
President Trump and how Uber responded to a cab strike in New York City lead in a viral
#DeleteUber campaign on social means (appendix 2).
Multiple management mistakes under the X-CEO Travis Kalanick slowed down the uber
performance. He empowered to make a resolution without the intense permission from the
establishment’s headquarters. Although the manager always emphasis on the main values and
relied fully on the team. His leadership style both result in Uber success and stained the
organization reputation. This reveals the problem of managing group and teams as well as
managerial communication. This was one of the major issues, which was affecting the
performance of the organization (Zetlin, 2018).

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1.1.1.1 Solution
This problem should cope up by setting good leadership personality for the organization as
well as by setting smart strategy. The proper discussion should be conducted with the top
authority before taking any decision for the organization which should be adopted by the
company on an immediate basis. A well as,
• Uber should improve resilience, which will support them through hard times and which
should be implemented within a period of 1- 2.5 years. Proper public relation theories as
well as policies should be framed;
• They should construct strong connections with the main influencers; and,
• Should have a healthier solid idea for social media within 1 year which can help them in
their success.
This solution should be implemented immediately as per the time frames specify by
taking this problems seriously and by hiring good level marketing communication guy. A
good marketing process by the company can be achieved in a medium-term by applying
innovative technology as well.
This can be more explained with the help of Excellence theory which helps in figuring out
that empowerment of public relations is a critical management role and Public relations
models which state that association should base its inner and exterior message and connection
building on the two-way symmetrical model (DeGroot, 2015).
1.2 Problem
1.2.1 CEO is shouting over diminishing pay
There was a leaked video screening Uber CEO Travis Kalanick moralizing Uber driver Fawzi
Kamel for ‘responsibility’ during a fight over dropping Uber incomes (Appendix 3)

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Kamel protested that variations to the Uber corporate model had given rise to in decreasing
yields to cab drivers. Although CEO Travis has dispensed a regret for his character during the
journey.
Uber has long faced disapproval for its corporate model, which classifies drivers as liberated
servicers rather than staffs, permitting the company to escape remunerating them minimum
earnings or welfares. This newscast bang enhances to the worst connection Uber has with its
cab drivers resulting in less driver faithfulness towards Ubers. Many car users carry on being
with Uber for the humble information that Uber supports their wages in various parts.
However, Uber main aim is to lessen its rates to compete with the opponents, which
indications a decrease in driver’s wages. An Uber car user from California has said: “I think a
lot of drivers feel that Uber always looked out for themselves first and foremost and relegated
drivers to a second tier”. 400,000 car user has presently left Uber for its challenges.
Opponents have promoted to cab drivers about their improved return and tip app. This reveals
the problem of managing behavior. This type of arrogance of the CEO affect the organization
performance and leads to a bad result of the organization (Krisher & Sell, 2017).
1.2.1.1 Solution
A good pioneer is the one who always accomplishes its employees in a well-affected way. A
leader should own the quality of equalism, should respect all level of the employees. The
CEO of the company needs to grow up as a leader. A good leader is the one who has control
over the anger, should not misbehave with the employees. Employees are the only person due
to which a person can achieve growth or failure in the organization. Respect of employees
should be the first priority of the organization and superior management of the organization
should well behave with the employees. Although all the solutions should be implemented on

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an immediate basis only, theories related to the employees relation should be framed and
follow within 1 year. A good CEO should respect all the employees no discrimination should
be done and various concepts related to this should be taken in reference within 5-year
period. As these are the only person who are responsible for the company success.
This can clear more understanding with the help of Human Relation Theories which
emphasis on the conduct of the humans within the business. Behaviour Management Theory
which emphases on the performance of the leader toward the employees of the business entity
and helps in better understanding of human behavior at the organization, such as inspiration,
struggle, desires, and gathering elements, improved profitability (Lumen, 2019).
1.3 Problem
1.3.1 The revelation of sexual harassment
Former Employee Susan Fowler, in a fiery expose on her blog, appealed that she and other
lady employees had been passed through sexual harassment at Uber (appendix 4, 5). The
organization upper administration allegedly declined to take steps against him as he was a
high performer staff member. Uber male-domination was revealed in only 15.1% of Uber
engineering, product managing and scientist roles being occupied by women (Isaac, 2017).
Its treatment of ladies prompted charges by a previous female worker of being exposed to
diligent sexism and discrimination, and career movement was effected if protests were made.
HR was seen as regularly rationalizing top entertainers in light of their capacity to improve
the soundness of the business. This reflects the problem of managing diversity and values and
attitudes. This was one of the important reasons for the failure of the organization.

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1.3.1.1 Solution
Each association ought to have an approach that layout about sexual harassment,
discrimination, etc. and these approaches should be implemented within 1 year in the
organization. Every one of the workers whether it is a female or a male ought to be dealt with
similarly. Urgent actions should be taken regarding the problem raised by the employees.
Proper importance should be given to all the employees. Various policies and concepts
should be adopted in relation to the organizational environment within a period of 1-2.5 year.
The working environment ought to be free of sexual exercises, so all representatives feel safe
while working in the association.
This problem should cope with within the long term as proper policies and outline have to
framed regarding the safety of women in the organization. It can be properly explained more
with the help of Bad apple theory in sexual harassment that reflects in inappropriate behavior
that reflects about essential human qualities and company should apply model alliance
(Sexual Harassment) which is also against sexual harassment (Lawton, 2015).
3 Discussion
Uber is a profit situated organization that, shockingly, has prepared profit-making as there
main objective rather than the happiness of its clients. Uber has not understood that devising
a customary way to deal with income definitely harms a business these days as opposed to
encourages it. Uber is not thinking about other similarly critical elements, for example,
corporate social obligation, business entities if it has earned unethically and dishonesty.
Starting at now, Uber has been exceedingly condemned for 3 problems in a time of only 2
months. Exploiting cabs and cab drivers that were conspicuous for the "Muslim Travel Ban"
is a standout amongst the most corrupt choice that Uber took, which prompted worldwide
chaos. (Lopez, 2017).

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Due to this problem, it came in the knowledge that 200,000 Uber apps were removed within
5 days when #deleteUber was formed on social means. The public does not rely on uber
(Sullweyman, 2017). As well as due to the specific advance of taking thieving intellectual
property from a Google spin-off was extremely absurd for the organization and influenced
the goodwill of the organization.
Susan J. Fowler's blog regarding sexism, sex dissimilarity, and sexual harassment was an
extra emergency that Uber needed to look. The most exceedingly awful thing, in any case,
was that Uber had not attempted to support her; rather uber were taking steps to threaten her
for her objections to HR. After this episode, Uber was a 3 increment in searches on Google
Trends (O'Malley, 2017).
With 25% of ladies employed in Uber when she linked with uber, just 6% were left following
one year when she chose to stop. Abuse of cab driver and the video getting viral (Appendix
3) is a portion of the elements that prompted the decline of its image over years as the loss of
cab riders prompted diminished development rate contrasted with its rivals. Subsequently,
these adverse audits and abuse of cab riders could be a danger for the company by
influencing upcoming cab driver's capacity to ride for the company and rather ride for
contenders, which can damage the organization's image value, as the cab drivers are the
fundamental way for fetching deals and associating with clients.
4 Recommendation
Initially, Uber needs an open conciliatory sentiment for their activities over the most recent
couple of months. Earlier Uber rebrands on the social media and live question and answers
session. In all of the three events discussed in the examination, not even once did Uber direct
apologize to individuals largely for its stumbles. In like manner, Uber should clear up how it

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is beginning innovation to make up for blunders with the objective that it would not occur
again later on.
In addition, Uber needs to take care that while choosing the CEO every one of the pioneers
quality should be open. Future CEO ought not to look like X-CEO in light of the fact that the
CEO takes after the substance of the association. Choosing a CEO should be smartly done as
it is one of the major decisions for the company growth. Chief is straightforwardly or in a
roundabout way dependable in each of the three occurrences. The new CEO should be a lady
that has knowledge of keeping up a business, is a ladies' lobbyist, has an association with
corporate social responsibility and has assisted with rebranding. Providing a basic status to
the lady would propose sexual introduction value which will adjust the adverse results
achieved by Susan's sexism blog. Various rules and regulation should be farmed according to
time duration i.e. policies which needed to be adopted within 1 year, 2 years or within 5 years
of time period.
Thirdly, joining all companies’ cab drivers in the principal organization procedure by
empowering a Company Town Hall gathering for all company cab drivers in every city per #
months to talk about Uber motivation, cab driver worries, and innovative conceivable
outcomes. This can uplift the Uber's revenue since more Uber drivers will welcome the
organization choices of the affiliation.
Also, Uber should make a devotion plan that urges more cab drivers to remain with Uber,
consequently diminishing revenue. This constancy plans will denounce the cab drivers under
two rule; the number of rides and riders evaluations. The cab driver will be viewed as
logically productive while the number of rides is more and they get steadily more
assessments.

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There must be 3 awards; gold, silver, and bronze. On the off chance that the driver achieves
2000 rides in a single year with obvious extraordinary evaluations, she/he will get a bronze
honor, which gives the help of a $50 favoring voucher to their most venerated location or 3
free dinners at their very own restaurant tendency. If the cab riders accomplish 2800 rides in
one year with great examinations, they would get silver respect where Uber gives drivers a
$100 favoring voucher and 6 free dinners at any dinner dependent on their own inclination. In
the event that an Uber rider achieves 3500 rides in a single year and be in the essential 50
assessed cab drivers in their city, then they will receive Gold respect.
Since this plan is an objective organized framework, it will give Uber drivers more
inspiration to remain, as they are found in the basic acting technique and are given
inclinations. This will in this way unavoidably change the impression of the affiliation.
5. Conclusion
Uber ought to convey a good example of an image to the clients. They should adjust their
importance accentuate, and highlight on making social variation rather than just concentrating
on minimizing cost and simple access (Appendix 6). Not only Uber, but also each starts up
desires to appreciate the significance of community sign and public help. If uber has a best
practice on the specialist process. Even however it has a couple of misfortunes and weakness,
of the management can improve the areas that should be check and created, then uber would
be the no one associated with fullest workforce fulfillment and initiative. They need to
comprehend that online networking is a very critical perspective in the lives of the twenty to
thirty years, and they ought to utilize in their benefit by spreading a good copy of themselves.
Being an expert in the workshop, having planned administration that emphases on planning
decisions that will help to uber in produce cash not in the short term, but also in a long time
as well, and concentrating on fulfilling their representative and clients needs will be going to

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create uber fruitful in this era. Uber henceforth surely needs to frame itself in the events that
it needs to make due in this market.
6. Bibliography
DeGroot, B., 2015. How PR 'Excellence' Theory and Subculture 'Best Practices'. [Online]
Available at: https://conservancy.umn.edu/bitstream/handle/11299/173676/Capstone
%20Barbara%20DeGroot%20Final.pdf;sequence=1
[Accessed 12 April 2019].

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Edwards, J., 2017. Uber's leaked finances show the company might — just might — be able to
turn a profit. [Online]
Available at: https://www.businessinsider.com.au/uber-leaked-finances-accounts-revenues-
profits-2017-2
[Accessed 11 April 2019].
Follow Your Heart, 2018. Uber your way around | Travel Tips. [Online]
Available at: https://followyourhearttours.com/uber-your-way-around-travel-tips/
[Accessed 11 2019 2019].
GoPride.com News Staff , 2017. #DeleteUber campaign grows, Lyft pledges $1 million to
ACLU. [Online]
Available at: http://chicago.gopride.com/news/article.cfm/articleid/81378256
[Accessed 11 April 2019].
Hartmans, A. & Mcalone, N., 2016. How Uber grew up to become the world's most valuable
startup. [Online]
Available at: https://www.businessinsider.in/How-Uber-grew-up-to-become-the-worlds-
most-valuable-startup/articleshow/53439314.cms
[Accessed 12 April 2019].
Isaac, M., 2017. How Uber Deceives the Authorities WorldWide, s.l.: The New York Times.
JanyoBytes, 2017. Uber’s leaked finances show the company might — just might — be able
to turn a profit. [Online]
Available at: https://janyobytes.wordpress.com/2017/02/27/ubers-leaked-finances-show-the-
company-might-just-might-be-able-to-turn-a-profit/
[Accessed 11 April 2019].

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Krisher, T. & Sell, S. S., 2017. Uber drivers are growing angrier over price cuts, s.l.:
Associated Press.
Lawton, A., 2015. The Bad Apple Theory in Sexual Harassment Law. [Online]
Available at: https://digitalcommons.law.msu.edu/cgi/viewcontent.cgi?
article=1561&context=facpubs
[Accessed 12 April 2019].
Levin, T., 2015. How Word of Mouth Marketing Helped Uber Become More Popular than
Taxis. [Online]
Available at: https://kaleidico.com/how-word-of-mouth-marketing-helped-uber-become-
more-popular-than-taxis-75666/
[Accessed 12 April 2019].
Lopez, G., 2017. Why people are deleting Uber from their phones after Trump’s executive
order. [Online]
Available at: https://www.vox.com/policy-and-politics/2017/1/29/14431246/uber-trump-
muslim-ban
[Accessed 12 April 2019].
Lumen, 2019. Behavioral Perspectives. [Online]
Available at: https://courses.lumenlearning.com/boundless-management/chapter/behavioral-
perspectives/
[Accessed 12 April 2019].
Lybio, 2017. Uber CEO Kalanick Argues With Driver Over Falling Fares. [Online]
Available at: https://lybio.net/uber-ceo-kalanick-argues-with-driver-over-falling-fares/people/
[Accessed 11 April 2019].

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O'Malley, S., 2017. Workplace Sexual Harassment. CQ RESEARCHER, 27(38).
Staley, O., 2017. The downfall of Uber’s Travis Kalanick started with a single blog post.
[Online]
Available at: https://qz.com/1011488/the-downfall-of-uber-ceo-travis-kalanick-started-with-
a-single-blog-post/
[Accessed 11 April 2019].
Sullweyman, A., 2017. Delete Uber Sees 200,000 App Users Cancel Accounts as UBER CEO
Retreats From Donald's Trump Panel. [Online]
Available at: https://www.independent.co.uk/life-style/gadgets-and-tech/news/deleteuber-
uber-200000-taxi-app-users-cancel-accounts-ceo-travis-kalanick-retreats-donald-trump-tech-
a7561081.html
[Accessed 12 April 2019].
Zetlin, M., 2018. 7 Leadership Lessons You Can Learn From Travis Kalanick's Departure
Over Uber's Culture Crisis. [Online]
Available at: https://www.inc.com/minda-zetlin/7-leadership-lessons-you-can-learn-from-
travis-kalanicks-response-to-ubers-cultu.html
[Accessed 12 April 2019].

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7. Appendix
1. Appendix

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(Edwards, 2017).

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(JanyoBytes, 2017)

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2. Apendix
(GoPride.com News Staff , 2017).

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3. Appendix
(Lybio, 2017).

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4. Appendix
(Staley, 2017).

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5. Appendix : Google trend sexual harassment & Uber CEO Scandal

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6. Appendix
(Follow Your Heart, 2018).