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Topic:
Uber Hits a Bumpy Road
Essay Instructions:
Read the Critical Thinking Case below (Uber Hits a Bumpy Road ). Three (3) questions are posed at the end. Write a 3 page essay in APA style that summarizes the case (in your words) and give your perspective on the questions posed. Research the topic beyond the textbook case to support your perspective.
Uber Hits a Bumpy Road
Uber Technologies, Inc. is the world’s largest technology start-up, valued at close to $70 billion. But that doesn’t mean it has been smooth sailing for the ride-hailing company since its start in 2009. Despite disrupting and revolutionizing the transportation industry in a short period of time, Uber’s meteoric rise has caused some shortcuts in organizational structure, corporate culture, and effective HR practices that have left the company with self-inflicted wounds that may take a long time to heal.
Uber has experienced several scandals over the past few years, including drivers demanding to be classified as employees (not contractors), a tool called “greyball” that allows data collected from the Uber app to identify and avoid enforcement officers trying to catch Uber drivers in cities where the service was illegal, and recent resignations of top executives, including the company’s president and the heads of product development and engineering. But nothing has been quite as damaging as a recent blog post by a former female employee, which detailed the inappropriate behavior that seemed to be commonplace in Uber’s workplace culture.
The allegations of sexual harassment put forth by former Uber engineer Susan Fowler were explosive. Detailed in a February 2017 blog post, Fowler says she alerted company HR about her manager’s inappropriate behavior, even taking screenshots of his suggestive emails, but Fowler was told her boss would not be fired for sexual harassment because he was a “high performer” for the company. After Fowler’s story went public, the company hired former U.S. attorney Eric Holder to investigate the allegations and other workplace issues. Holder’s recommendations, which the Uber board of directors unanimously approved, include changes to senior leadership, enhanced oversight by the company’s board, changes to the company’s internal financial and audit controls, revisions to the company’s cultural values, mandatory leadership training for senior executives and other managers, improvements to the overall HR function and complaint process, and the establishment of an employee diversity advisory board. In addition, as the result of a separate investigation, Uber fired more than 20 other people because of harassment claims.
With increasing pressure from the company’s board and other investors, CEO Travis Kalanick said he would take a leave of absence while still mourning the unexpected death of his mother in a recent boating accident. However, most board members lost faith that Kalanick would be able to come back after his leave and make things better. At the urging of the board, two venture capitalists were dispatched to Chicago, where Kalanick was interviewing COO candidates, to present him with a letter from five of Uber’s major investors demanding his resignation. After hours of discussion, Kalanick agreed to step down. According to an Uber spokesperson, a committee of 14 executives is running the company until a new CEO is hired.
1. According to recent data, only 36 percent of Uber’s current employees are women. How do you think this situation helped perpetuate a flawed corporate culture?
2. What can Uber do to ensure its competitors are not chipping away at its dominant market share as a result of such bad press?
3. Do you think installing an experienced female CEO would help the company change its culture and workplace environment? Explain your reasoning.
Write a 3 page essay in APA style that summarizes the case (in your words) and give your perspective on the questions posed. Research the topic beyond the textbook case to support your perspective.
Essay Sample Content Preview:
Uber Hits a Bumpy Road: Analyzing Organizational Challenges and Strategic Responses
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Uber Hits a Bumpy Road: Analyzing Organizational Challenges and Strategic Responses
Despite being labelled the largest technology start-up in the world, Uber Technologies, Inc. has yet to go through a smooth sail with an estimated worth of $69. 83 billion. After starting in 2009, Uber succeeded in changing the transportation industry and, at the same time, experienced rigorous problems that arose from its practices and cultures within the company. This is the conclusion of the critical evaluation of the essential issues Uber has been experiencing. The questions about Uber's flawed culture, competitive strategy, and leadership change are answered. In addition, a perspective from other information is given.
Summary of the Case
Scandals and organizational failings have followed Uber's ascent to innovation in the technology industry. Some of them are the drivers who insisted on being given the status of employees and not independent contractors, using a tool known as 'greyball' for dodging law enforcement agencies in cities where Uber services were prohibited, and the departure of some CEOs due to allegations of misconduct. However, the most significant scandal appeared in February 2017, when Susan Fowler, the ex-Uber engineer, published a blog. It was Fowler who wrote a detailed post describing sexual harassment and other misconduct prevalent at Uber and the company's weak HR measures (Carney et al., 2020). This led to Uber hiring former US Attorney General Eric Holder to coinvestigate the allegations presented in the blog post. The changes based on Holder's recommendations include restructuring the senior leadership, increasing supervision, upgrading the workforce management departments, and forming an employee diversity council. Also, Uber sacked more than twenty employees who had been accused of sexual harassment. However, the problems remain; the resignation of the chief executive officer, Travis Kalanick, was forced by significant investors, and the interim management by a committee of executives put Uber in a very fragile position.
The Impact of Gender Imbalance on Corporate Culture
Currently, Uber has a problem with gender diversity, with only 36% of current employees being women, hence exposing the company to a flawed organizational culture. A skewed gender picture may thus mean that women's concerns or experiences ma...
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