Analyzing Human Resource Management Challenges at Uber Corporation

This report delves into the human resource challenges faced by Uber, a prominent cab-sharing service, focusing on its unique business model of classifying drivers as independent contractors rather than employees. The report highlights the resulting lack of employment rights and benefits for drivers, contrasting this with the company's operational structure and profit generation. It connects these issues to relevant theories such as employee motivation and engagement, and Maslow's hierarchy of needs. The report also provides recommendations for Uber to improve its HR practices, including offering benefits such as safety allowances and insurance. The report concludes that while the business model is innovative, it is crucial for Uber to address employee rights and safety to ensure a positive work environment and maintain a sustainable business model. The report uses a news article as a case study to highlight the issues.

Running Head: Human Resource Management 1
Human Resource Management

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Executive 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 service
to 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 provide
additional benefits to different employees.

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Introduction
The 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, the
present 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 Article
Uber is an innovative business organization which is based on the concept of sharing economy. It
has 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 related
to 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 Article
The 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 have
to 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. Since
the drivers work for the organization, their safety and security should also be assured by the

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organization. However, the organization is shying away from its responsibilities and is not
providing the drivers with their rights. The article has raised the human right issue of the
employment.
It can be critiqued that the Uber cab drivers are driving cars to earn their livelihood. The drivers
make efforts and drive all day long their cars. The organization gets benefits by earning a
commission on every ride. However, several times, the driver gets injured while in a car accident
or other workplace hazard. In this situation, the workers should be provided with compensation
so that they can treat themselves and look forward to their future life. The business model of the
company is as such that it obtains the full-time or part-time services from its drivers. Therefore,
they should be included in the category of the employment rights. Thee cab drivers should be
provided various rights associated with the full-time employment. It includes the provision of
pension, retirement plan, security and insurance coverage (Griego, Geroy and Wright, 2000).
Another theory associated with the present case is that of employee motivation. According to
Maslow’s pyramid of motivation, security is an essential component of motivation. If the
employees will not be satisfied with the security arrangements of the organization, they will feel
insecure and leave the organization as soon as possible. Therefore, it is important that the
organization implements strategies which uplift the security standards of the organization
(Frydman & Saks, 2010).
Employee engagement theory is also applied in the present case. The organization is hiring
independent contractors as drivers and has no concern for the safety and growth of these
workers. This position of the organization does not contribute to its good image. The drivers are
not concerned about the image of the organization and do things which may harm the reputation
of the organization. IT also affects the perception of other employees and they assume that the
organization is not concerned with the well-being of other employees. However, employee
engagement is important for the development and the growth of the organization. The employee
engagement refers to the association of the employees with the organization. It is the willingness
of the employees to go out of their predefined duties to work for the organization’s benefit.
Today, most of the business organizations are focusing on increasing the engagement of the
employees with the organization. It will increase the productivity as well as the efficiency of the
employees (Brun & Dugas, 2008).
In order to prevent any legal hearing, the organization has also resolved all the business issues
outside the court. It suggests that the management of the organization are skeptical that there
business processes and operations will be examined by the organization carefully.
Recommendations
The present new article has elaborated the issue of employment in Australia. In order to
uplift the security standard in the organization, the business organization should implement
different strategies. In the present section, several recommendations have been made which will

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be beneficial for the organization. The organization should identify the reasons through which
they can obtain the HR policies from the competitors. The organization will need to examine the
policy and change them so that more customers are attracted towards the organization.
 The organization will also computerize all the systems to that it becomes more time-
efficient. However, it is important to implement training system. The training should
focus on practical as well as behavioral training. The drivers should be taught various
aspects so that they can behave properly with a customer. The training should also
include basic self-defense training. With this training, the employee would be able to
protect himself in case of adverse situations (Cuevas-Rodríguez, Gomez-Mejia &
Wiseman, 2012).
 The organization should be clear on employment and contractual policies. During the
contract with the drivers, the organization must discuss upon the worker’s health and
safety.
 The business organization should provide several other employee benefits which include
safety allowance and insurance. In several mishaps, there is a requirement of significant
amount of funds. However, drivers most often do not have aces to that amount of money.
In this regard, the organization can open a fund which will be used to assist the drivers in
case of any emergency (Frydman & Saks, 2010).
Conclusion
Conclusively, it can be stated that human resources are the most important issue for an
organization. In order for an organization to develop itself, it may need human resource at every
operation and process. However, there are still several issues which may impact on the human
resource management of an organization. In the present, the newspaper story of Uber has been
taken. Uber is a cab sharing service provider. However, the organization recruits drivers in the
form of independent contractors. As such, the organization does not have to worry about the
human resource policies in an organization. However, this situation is completely wrong and
unethical. The organization takes care of different employees to possible extent.

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References
Manzoor, Q. A. (2012). Impact of employees motivation on organizational effectiveness. Business
management and strategy, 3(1), 1.
Griego, O.V., Geroy, G.D., and Wright, P.C. (2000). Predictors of Learning Organizations: A Human
Resource Development Practitioner’s Perspective. The Learning Organization: An International Journal,
7(1), 5–12.
Brun, J., & Dugas, N. (2008). An analysis of employee recognition: Perspectives on human resources
practices. The International Journal of Human Resource Management 19(4), 716-730.
Cuevas-Rodríguez, G., Gomez-Mejia, L.R., & Wiseman, R.M. (2012). Has Agency Theory Run its
Course?:Making the Theory more Flexible to Inform the Management of Reward Systems. Corporate
Governance: An International Review, 20(6), 526–546.
Frydman, C., & Saks, R. E. (2010). Executive compensation: A new view from a long-term perspective,
1936–2005. Review of Financial Studies, hhp120.
Yoo, T. (2017). Uber Australia is settling unfair dismissal cases, despite insisting drivers are not
employees. [Online]. Available at: https://www.businessinsider.com.au/uber-australia-is-settling-
unfair-dismissal-cases-despite-insisting-drivers-are-not-employees-2017-6 [Accessed on: 24
September 2017].