Uber Human Resource Management

Difference in Uber Human Resource Management of Contract-Drivers and Regular Employees

Part 3—Uber: Organizing: Second Key Component of Success 

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This is the third part of a five-part cumulative case, and focuses on the organizing component of success for Uber. This part utilizes chapters 8, 9, and 10 from the textbook. This real-world application of management knowledge and skills is designed to help you develop critical thinking ability and realize the practical power of sound managerial skills for solving problems in your job and career.

Read the cumulative case and respond to the questions that follow.

Case: (Excerpt) 

Kalanick’s main thrust among Uber employees is to encourage disagreement and debate, according to writer Max Chafkin. “What Travis infuses in the company is that the best ideas win,” Uber chief technology officer Thuan Pham told Chafkin. “You have to be willing to step on toes to make sure the idea is heard, and you’re supposed to only be loyal to the idea, to the truth.”

This kind of spirited interaction among employees, part of Uber’s organizational culture or “social glue,” falls under the second of the four management functions—namely, organizing. Organizing is all about arranging tasks, people, and resources to accomplish the company’s work. Organizing is most effective when managers are able to align their company’s mission, vision, and strategies with its organizational culture and structure. The kind of culture and structure a company has can influence and be influenced by its human resource management—the activities of planning for, attracting, developing, and retaining an effective workforce. They are also influenced by how the company deals with change and innovation…………………………………………….

Required:

Explain the difference in Uber’s human resource management of contract-drivers versus regular employees in the areas of recruiting, training, compensation and benefits, and performance appraisalsUber is among the fast-growing companies in the world; started with only four employees, but today has over 11,000 full-time employees and approximately 1.1 million contract-drivers. Despite the company having a large pool of employees, its human resource management strategy has been heavily criticized by not only the drivers but also the other stakeholders. Uber’s poor human resource management practices are based on its organizational culture of bullying. Kalanick’s leadership style particularly when dealing with the employees represents the company’s organizational culture. Kinicki and Williams argue that the leader’s style should be different from organizational culture (242). The transfer of leadership style into the organizational culture and especially in the human resource management appears to have put Uber into constant conflicts with their drivers. The human capital management approaches governing the drivers are different from those applicable to regular employees. As such, the paper will examine the difference in Uber’s human resource management of contract-drivers versus regular employees in the areas of recruiting, training, compensation and benefits, and performance appraisals.

Differences in Recruitment

Uber human resource department pays more attention to the recruitment of its regular employees than its drivers. The recruitment of contract-drivers is not conducted by the company, but it is outsourced. Unlike the regular employees staffing strategy whereby the recruitment planning including identifying the vacancy, job analysis, job description, job specification, and job evaluation are undertaken as put forward by Kinicki and Williams (282), the recruitment of drivers is done based on the demand in the market. The recruitment of drivers is mainly based on the driver’s physical fitness and compliance with the regulations. For example, Uber through the Checkr firm checks the drivers seven years records including the criminal record reviews with the law-enforcement agencies, state and national departments. Besides, the driver will be required to provide a social security number, driving license, insurance, and vehicle registration number. The driver will be only selected to join the company’ program if he meets the above requirements, unlike the regular employees who are recruited based on the company’s human resource strategic needs.  

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