BUSM1162: Uber's Leadership and Organizational Challenges Analysis

This report provides a detailed analysis of the issues and problems faced by Uber, focusing on the company's leadership, organizational values, and diversity. It examines the impact of the CEO's leadership style, including poor communication, lack of employee support, and a toxic work environment. The report identifies key problems such as the lack of diversity and equity, and the resulting negative impact on employee morale and company culture. The report also discusses the importance of organizational values and the need for a more inclusive and equitable workplace. It then presents solutions and recommendations to address these issues, including promoting unity, fostering a safer work environment, and implementing changes in leadership practices. The report concludes with key learnings and suggestions for Uber to overcome its challenges and improve its overall performance.

Running head: ISSUES AND PROBLEMS IN UBER
ISSUES AND PROBLEMS IN UBER
Name of the Student
Name of the Organization
Author Note

1ISSUES AND PROBLEMS IN UBER
Executive Summary
Between office to clients, to the airport, Uber has given its employees an easier way to
take work-related rides by adding them in the Uber Business. They will get expense less rides,
right from their Uber app The founder of the Uber company was also caught arguing with an
employee. All these present issues has led the company to face such a bad reputation and
criticism for the first three months of the financial year.
The first part of the report explains the key activities of Uber and how the company
makes its revenues. Also, the main problem in the organization has been identified which is very
poor leadership structure and practices of the CEO of the company. The report will also give a
rationale as to why it is the main issue also how it is related to the strategic and value
management of the company. It will conclude with the recommendations and conclusions.

2ISSUES AND PROBLEMS IN UBER
Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................4
Background......................................................................................................................................4
Identification of issues and problems..............................................................................................5
Issue 1. Organizational Values....................................................................................................5
Issue 2. Diversity and Equity.......................................................................................................6
Issue 3. Leadership......................................................................................................................8
Discussion........................................................................................................................................8
Solution............................................................................................................................................9
Values..........................................................................................................................................9
Diversity....................................................................................................................................10
Leadership..................................................................................................................................10
Recommendations..........................................................................................................................11
Fig 1. Represents how a company is benefitted by Complexity Leadership Style........................12
Conclusion.....................................................................................................................................12
Key learnings 1 - Challenges faced...........................................................................................12
Key learnings 2 - Crisis of the company...................................................................................13
Key learnings 3 - Suggestions...................................................................................................13

3ISSUES AND PROBLEMS IN UBER
References......................................................................................................................................14

4ISSUES AND PROBLEMS IN UBER
Introduction
In the year 2017 the company has faced a lot of problems such as the unfamiliar
employee treatment, technologies stolen from the key investor companies like Google and
Hitachi.
As cities across the world seek to revive themselves from the view of sustainability,
taking into account both the environment and aging populations, there is a clear realization of the
demand for local transportations that are both comfortable and affordable Uber is a private
company in Silicon Valley, California USA. The company is known for its biggest success story.
Uber is known for its story of innovation, which the company has launched in its transportation
sector in order to satisfy its customers.
The purpose of the report is to identify the challenges, which are faced by the managers
of the company. The focus of the report will be how the present CEO can learn various
leadership an managerial skills from the previous leaders and managers of the company (Dudley,
Banister and Schwanen 2017).
Background
Uber is a 10-year-old company, which is considered as a leader in the industry of
providing cab facility to the citizens of the country. The company currently owns around 1500
staffs who are distributed in the head office of the country. The number of male dominated staffs
in the head quarters of the company is around 60. Whereas the clerical staffs mostly comprises of
the female representatives. This also includes the drivers of the vehicles or cabs in the country.

5ISSUES AND PROBLEMS IN UBER
Despite its position for the aggressive position in the cab facility, The reputation of the company
is slowly decreasing with the promotion of the new CEO in the company (Rogers 2015). Uber is
a highly innovative transportation company that was launched in San Fransisco in the year 2009
by the entrepreneurs Travis Kalanick and Garret Camp. The company is known for
accommodating both the passengers and drivers to have the access of the Uber application
available in their smart phones.
The employees working in the organization mostly feels that the present CEO’s
autocratic leadership and managerial behavior skills are suppressing the innovative and
initiatives of the top managers and staff productivity of the company. This culture has also
contributed to the poor communication skills with the frontline staffs which is causing further
disconnecting the communication with the lower level workers and top level manages of the
company (Davidov 2016).
The company, which was officially launched in order to provide transport facilities in USA, only
has spread over to more than 556 cities in the world and is presently operating in 87 countries
(Acevedo 2016). Apart from the transportation services to the customers the company is also
known for providing food service which is very well known as Uber Eats.
Identification of issues and problems
Issue 1. Organizational Values
Further reading the case study the major problems, which are identified, in the fast
growing and innovative company like Uber is that of the present CEO’s autocratic leadership

6ISSUES AND PROBLEMS IN UBER
styles. This can be demonstrated with the managerial structure of Uber where there is a lack of
coordination, communication and cooperation, low standardized workforce among the lower
level members of the organization with the top-level managers of the organization. The company
is believed to follow the traditional leadership style (Mulholland 2016). The main business
problem, which is faced by the company, is with the bad leadership. Even that the company is
managing to grow tremendously over the past years, but the CEO has always been criticized
particularly in the way he treats his employees and also how the firm is addressing the issues
faced by the company in the present days. According to Rassman (2014) the employees of Uber
are unable to present their problem to the top management of the organization. Kalanick who
was the CEO of the company was also seen to be to be arguing with an employee over payment,
which was caught on a camera. This issues proves that the employees in Uber cannot get solution
to their problems. Crank (2015) also notes that just few months before Jeff Jones who was in the
position of the top management resigned because the company was operating in a way which
was different from its morals. Therefore, it can be implied that company has managed its way in
expanding over years besides it has also failed in the way of maintaining its relationship with the
employees and in managing the employees of the company.
Issue 2. Diversity and Equity
It can be derived from the case study that Uber is facing a series of problems in the
financial year 2018. The problems include lawsuits for still operating its business where it has
turned up to be banned. The present CEO Kalanick is also facing a lack of the balanced values
which were owned by the company for so many years. The mission based values of the business
as well as a focus of the contribution values are ignored by the top managerial and the present
CEO of Uber. The company is also lacking culture. A broken company culture is the result of the

7ISSUES AND PROBLEMS IN UBER
problems which are faced by the company in the present years. According to Isaac and Davis
(2014) the company crisis in culture are often the lead to many of the small failures. Therefore
the Human Resource is a important eye which the company should take care of, in order to keep
things in check.
Another most important issue which has aroused in the recent days is that the
exacerbation of Uber’s toxic work culture. In the year 2017 a female engineer was sexually
harassed and when she had reported the issue to the top management of the organization, she was
threatened in order to be fired from the company. The investors of the company are in a great
shame with the transparency of the culture of the organization. They went on to a critique where
the CEO of the company has formed himself not to look in to the sexual harassment allegations.
The company has come up with selecting a team of members who will investigate into the matter
and do the needful. It is a shame to find out that a famous company like Uber has appointed a
team of people in order to look into the case of the sexual harassment of the female human
resource. As stated by Kovác (2018) the stakeholders of the company are disappointed to find
out that Uber has selected a team of people who will be investigating the disruptive culture of the
company and make recommendations for a change in the behavioral style and approach. In the
year 2018 the company has overhauled it’s hiring, reviewing and compensation practices, still it
continues to face various problems in the operations department. This also includes the
implementation of a new salary structure in the market. Reviewing the performance process and
rolling out the reports leading to the diversity and leadership training of the thousand of
employees globally. Due the sexual harassments of the employees in the company the citizens of
the country specially the females are finding it very difficult in believing the Uber drivers. From

8ISSUES AND PROBLEMS IN UBER
the day the company got established the drivers of the company are facing various problems with
the low wage and lack of benefits which are provided to them.
Issue 3. Leadership
The company has finally come up with the compensation method for certain jobs where
the primary source of income for the employees only matters. This will help the employees gain
a competitive advantage over the other workers in the company. The employees will be able to
give their bets in their work and help the company in achieving the group goals of the
organization. Gender equity should be the main focus of the company. In order to spread the
gender equality of the members working in the company a private firm named Manas Foundation
has joined hands with Uber in order to help the company drive its awareness about the gender
based violence in the company. Manas Foundation is the present years is working successfully
and engaging the drivers of the company through intensive trainings, home visits and group
interactions. This has helped the drivers and motivated them to enhance the interactive learning
of gender related topics with the drivers.
Discussion
The employees working in the organization mostly feels that the present CEO’s
autocratic leadership and managerial behavior skills are suppressing the innovative and
initiatives of the top managers and staff productivity of the company. This culture has also
contributed to the poor communication skills with the frontline staffs which is causing further
disconnecting the communication with the lower level workers and top level manages of the

9ISSUES AND PROBLEMS IN UBER
company (Davidov 2016). The company also believes that safety is a shared responsibility of the
driver of the company. It is a necessity which aims to stronger the relationship and partnership
with the public and the private institutions in order to address the issues which are faced by the
company in the present days. According to Guest (2018) if Uber continues to follow this
methods for a longer period of time it will be able to invite a huge number o stakeholders and
other authorities in order to ensure the governance and effectiveness of the implementation of the
new methods and process in the firm.
Solution
Values
In order to improve the Uber’s complexity leadership practices and their corporate culture
The following solutions can be implemented in order to solve the problems faced by the
organization. Promoting unity among the top management as well as the employees of the
organization will ensure that both the employees and the top management level managers are
working together as a team in order to achieve the organization aims and goals.
A better and safer working environment of the employees where they are free to express
their views, thoughts and problems they are facing in the organization. This will help them to
focus in their team goals and make a better place to work with other employees. The top
management employees and managers of the organization must change the way they are working
in the organization. They must initiate new and innovative way in order to handle the problems
with the employees of the organization. The managers and leaders can apply new policies and

10ISSUES AND PROBLEMS IN UBER
protect the worker’s welfare. They should also communicate with their employees and
implement new changes in decision making process.
Diversity
The company should create platforms in order to attract a lot of drivers to get engaged
with their company. The company should try out new ways in order to undermine its biggest
competitor company the Lyft. In order to poach the Lyft drivers Uber should realize and prompt
better ways to treat its own drivers well. Setting up small satellite offices in various metropolitan
cities will be a quick way for Uber in order to build a better relationship with the drivers. It will
also help the company in order to help the drivers’ secure lower insurance premium when they
refuel their own car or are buying a new car. These types of little gestures by the company can
improve the employee satisfaction. .
Leadership
The directors and CEO should have a clear vision and mind set in their plans. According
to Freeman and Parmar (2018) the top management should have a clear vision in their mind
which should go parallel with the mission of the organization. The employees in the organization
should also be aware of the changes which are made in the organization. This should be taken
care by the leaders and top managerial department of the company. The leaders should also
involve the employees with regular training in order to make sure that the employees are
behaving accordingly with the new regulations imposed by the organization.
The business leaders and top management team of the company should be able to
understand the importance of safeguarding the information which is shared by the customers.

11ISSUES AND PROBLEMS IN UBER
Business leaders should restrict the limit of the user data which is available with the employees
of the company. Customers these days expect the company to be transparent with the user
information shared by the company. Customers will reward the company with loyalty and
respect if the company keeps the user data private
Recommendations
A Focus in the Goodwill marketing will help the company in reacting well in tricky
situations. In New York when there was a crisis in the country and the rates of the cabs had
skyrocketed, Uber should have taken the responsibility in solving the matters. The company
should value its drivers as much as the riders
Above all the recommendations provided a company should never be afraid to apologize.
Consumers these days want the company to accept the responsibilities which the company is
liable to pay. Customers have a certain level of tolerance when the company has performed few
mistakes irrespective of the fact that weather the company is directly involved or not. Uber
should apologize for the present scenarios which have caused the company to face various
problems, then the customers will also be able to forgive the mistakes.
Complexity Leadership theory can be beneficial for the company as because it is framework for
leadership which enables the learning, creative, and adaptive capacity of the complex adaptive
system which is also known as the CAS. This framework of leadership theory will help the
company is fostering the dynamics in the complex adaptive system of functioning. It will also
enable the controlling structure to be appropriate and help the CEO of the company in

12ISSUES AND PROBLEMS IN UBER
coordinating with the members working in the organization and crate appropriate measures in
achieving the vision and mission of the company.
Fig 1. Represents how a company is benefitted by Complexity Leadership Style.
(Source : Browne 2017)
Conclusion
Key learnings 1 - Challenges faced
Uber as a company has faced various challenges in the past but has also managed to capture a lot
of market. It has also been hit hard by the crisis in the New York market in the financial year of
2017.

13ISSUES AND PROBLEMS IN UBER
Key learnings 2 - Crisis of the company
The crisis has led the company in losing a huge number of employees and creating a bad
reputation for the company. The key issues which are faced by the company are discussed.
Relevant recommendations and solutions to the issue are also provided.
Key learnings 3 - Suggestions
The key suggestions includes changing culture, changing the HR values and policies.
There should be unity among the members of the organization. This will ensure a better working
environment in the company.

14ISSUES AND PROBLEMS IN UBER
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