Uber has had phenomenal growth, going from four people in 2009 to the two kinds of workers it deals with today: (1) 22,000 full-time nondriver employees, such as those working in its San Francisco headquarters,' and (2) about 3.9 million active drivers globally, the independent contractors it calls "partners."2 Uber's Employees Former CEO Travis Kalanick viewed human resources (HR) as having one function – recruiting. Other HR functions were not a priority for Uber. For example, the company had fewer than 10 HR representatives in 2016 who were responsible for training managers and handling issues such as sexual harassment for the 6,000 employees it had at the time. "When HR becomes solely a talent race, boards and CEOS can miss the less obvious but equally vital value of managing both new hires and leaders who are facing increasing demands," says John Boudreau in a Harvard Business Review article.4 Kalanick's lack of focus on HR created a toxic atmosphere at the organization. Much of this became evident with Susan Fowler, a former Uber engineer. Fowler claimed in a February 2017 blog that she was sexually harassed by her supervisor and that HR ignored her claims. Other employees have since reported that a premium was placed on workers who delivered strong performance and aggressive growth, and that their inappropriate workplace behavior was overlooked, according to the New York Times.5 Uber attempted to improve this situation by focusing on the accuracy of its performance evaluations. In the past, performance reviews were subjective with managers simply meeting behind closed doors and ratina their emplovees. This obviouslv increased the potential for

Management, Loose-Leaf Version
13th Edition
ISBN:9781305969308
Author:Richard L. Daft
Publisher:Richard L. Daft
Chapter12: Managing Human Talent
Section: Chapter Questions
Problem 2DQ
icon
Related questions
Question

Uber drivers may purchase 7x7 Experience quality improvement classes. These are examples of

Multiple Choice
  •  
    on-the-job learning and development.
  •  
    compensation.
  •  
    incentives.
  •  
    benefits.
  •  
    off-the-job learning and development.
This part of the Uber continuing case focuses on Chapter 9 and covers principles related to
human resource management. This continuing case's real-world application of management
knowledge and skills is designed to help you develop your critical thinking ability and realize
the practical power of sound managerial skills for solving problems in your job and career.
Read the continuing case and respond to the questions that follow.
Uber has had phenomenal growth, going from four people in 2009 to the two kinds of
workers it deals with today: (1) 22,000 full-time nondriver employees, such as those working
1
in its San Francisco headquarters,' and (2) about 3.9 million active drivers globally, the
independent contractors it calls "partners."2
Uber's Employees
Former CEO Travis Kalanick viewed human resources (HR) as having one function
recruiting. Other HR functions were not a priority for Uber. For example, the company had
fewer than 10 HR representatives in 2016 who were responsible for training managers and
handling issues such as sexual harassment for the 6,000 employees it had at the
3
time. "When HR becomes solely a talent race, boards and CEOS can miss the less obvious
but equally vital value of managing both new hires and leaders who are facing increasing
demands," says John Boudreau in a Harvard Business Review article.4
Kalanick's lack of focus on HR created a toxic atmosphere at the organization. Much of this
became evident with Susan Fowler, a former Uber engineer. Fowler claimed in a February
2017 blog that she was sexually harassed by her supervisor and that HR ignored her claims.
Other employees have since reported that a premium was placed on workers who delivered
strong performance and aggressive growth, and that their inappropriate workplace behavior
was overlooked, according to the New York Times.5
Uber attempted to improve this situation by focusing on the accuracy of its performance
evaluations. In the past, performance reviews were subjective with managers simply meeting
behind closed doors and ratina their emplovees. This obviouslv increased the potential for
Transcribed Image Text:This part of the Uber continuing case focuses on Chapter 9 and covers principles related to human resource management. This continuing case's real-world application of management knowledge and skills is designed to help you develop your critical thinking ability and realize the practical power of sound managerial skills for solving problems in your job and career. Read the continuing case and respond to the questions that follow. Uber has had phenomenal growth, going from four people in 2009 to the two kinds of workers it deals with today: (1) 22,000 full-time nondriver employees, such as those working 1 in its San Francisco headquarters,' and (2) about 3.9 million active drivers globally, the independent contractors it calls "partners."2 Uber's Employees Former CEO Travis Kalanick viewed human resources (HR) as having one function recruiting. Other HR functions were not a priority for Uber. For example, the company had fewer than 10 HR representatives in 2016 who were responsible for training managers and handling issues such as sexual harassment for the 6,000 employees it had at the 3 time. "When HR becomes solely a talent race, boards and CEOS can miss the less obvious but equally vital value of managing both new hires and leaders who are facing increasing demands," says John Boudreau in a Harvard Business Review article.4 Kalanick's lack of focus on HR created a toxic atmosphere at the organization. Much of this became evident with Susan Fowler, a former Uber engineer. Fowler claimed in a February 2017 blog that she was sexually harassed by her supervisor and that HR ignored her claims. Other employees have since reported that a premium was placed on workers who delivered strong performance and aggressive growth, and that their inappropriate workplace behavior was overlooked, according to the New York Times.5 Uber attempted to improve this situation by focusing on the accuracy of its performance evaluations. In the past, performance reviews were subjective with managers simply meeting behind closed doors and ratina their emplovees. This obviouslv increased the potential for
managerial bias. The process also was deficient in that employees did not have individual
goals to be evaluated against, making it hard to hold employees and managers accountable
for objective results.
Uber's implemented two significant changes in 2017 to overcome problems with its appraisal
system. First, the company established measurable goals for all employees, and they were
transparent for all to see. Second, Uber implemented something similar to a 360-degree
performance appraisal system as evaluations needed to consider more than a manager's
direct observation of subordinates. The system consisted of committees reviewing
employees' self-evaluations, peer evaluations, and manager evaluations to make sure
bonuses were given out fairly, according to Uber Chief People Officer Liane Hornsey.
While the above changes may have improved the human resource process at Uber, employee
issues still persist. For example, HR Chief Hornsey resigned in July 2018 amid continuing
employee dissatisfaction. "Disgruntled employees still don't trust Uber's systems, and they
are turning to the media to air their grievances. This suggests that Khosrowshahi's attempt to
build trust among employees, an assurance that the company can address challenges
internally, has not taken hold," says Wired Magazine.'
Uber's Drivers
Uber isn't only failing its employees; it's also failing its drivers. The company seems to offer
very little in human resource development for its contractors. Drivers are given the option of
watching a 13-minute training video covering such topics as how to provide good service and
get five-star ratings from customers. "The only safety thing they tell us," says one driver, “is to
have a hands-free phone holder and to keep your eyes on the road."0 Drivers who want
additional training will have to pay for it on their own. Uber has contracted with 7x7
Experience to offer virtual quality improvement courses at a rate of $49 per course. They can
also bundle a course on "Tip Maximization" for another $10.9
These trainings are important as drivers are often victims of an automated performance
appraisal system in which passengers rate drivers on a scale of from 1 to 5 stars. Each driver
Transcribed Image Text:managerial bias. The process also was deficient in that employees did not have individual goals to be evaluated against, making it hard to hold employees and managers accountable for objective results. Uber's implemented two significant changes in 2017 to overcome problems with its appraisal system. First, the company established measurable goals for all employees, and they were transparent for all to see. Second, Uber implemented something similar to a 360-degree performance appraisal system as evaluations needed to consider more than a manager's direct observation of subordinates. The system consisted of committees reviewing employees' self-evaluations, peer evaluations, and manager evaluations to make sure bonuses were given out fairly, according to Uber Chief People Officer Liane Hornsey. While the above changes may have improved the human resource process at Uber, employee issues still persist. For example, HR Chief Hornsey resigned in July 2018 amid continuing employee dissatisfaction. "Disgruntled employees still don't trust Uber's systems, and they are turning to the media to air their grievances. This suggests that Khosrowshahi's attempt to build trust among employees, an assurance that the company can address challenges internally, has not taken hold," says Wired Magazine.' Uber's Drivers Uber isn't only failing its employees; it's also failing its drivers. The company seems to offer very little in human resource development for its contractors. Drivers are given the option of watching a 13-minute training video covering such topics as how to provide good service and get five-star ratings from customers. "The only safety thing they tell us," says one driver, “is to have a hands-free phone holder and to keep your eyes on the road."0 Drivers who want additional training will have to pay for it on their own. Uber has contracted with 7x7 Experience to offer virtual quality improvement courses at a rate of $49 per course. They can also bundle a course on "Tip Maximization" for another $10.9 These trainings are important as drivers are often victims of an automated performance appraisal system in which passengers rate drivers on a scale of from 1 to 5 stars. Each driver
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Management, Loose-Leaf Version
Management, Loose-Leaf Version
Management
ISBN:
9781305969308
Author:
Richard L. Daft
Publisher:
South-Western College Pub