Introduction
The term “organizational culture” describes an organization’s long-standing beliefs and values, as well as the staff members’ views and the anticipated value of their job, which will influence their attitudes and behavior. Administrators typically modify their leadership style to further the organization’s purpose, which may impact the job satisfaction of the workforce. Understanding the connection between company culture, leadership style, and employee job satisfaction is crucial. Uber has a rich history of management that brought the organization success, but eventually failed to maintain a positive and healthy work environment. Thus, the paper aims to analyze Uber’s leadership and reflect on its corporate culture and organizational behavior.
Leadership
Travis Kalanick is a controversial figure in the company and is associated with many scandals and allegations. He has a reputation for being assured and persuasive, and he is an exceptionally skilled salesperson—talents he demonstrated when selling knives door-to-door for the company (Eames, 2018). Kalanick is often perceived as a relentless hustler and is regarded as charismatic by others (Eames, 2018). In conversations and other criticism, many who had met Kalanick concurred that he was an intelligent, focused, hyper-rational, and determined entrepreneur (Eames, 2018). However, he was also widely perceived as an egotist and manipulator who had no qualms about interfering with other people’s businesses to achieve his goals.
I would tell him that although Kalanick had an image of being a diligent worker, he also spent a significant amount of time involved in several disputes that he had initiated, and soon acquired enemies. Regulators in the countries where the business was headquartered, rivals in business and life, the cab industry, and even disgruntled customers were among those who had issues with him. I would ask him why Kalanick, a forceful communicator in his speeches, emails, blogs for his companies, and videos, cannot use that skill to build quality communication with people. For instance, during a dispute with one of his employees about declining pay rates, Kalanick lost his cool in a video released on the internet. Several hours after the video started showing, Kalanick swiftly apologized for his verbal altercation with the driver (Eames, 2018).
Instead of personally apologizing to the driver, Kalanick sent an email of apologies to every employee, and the apology was then published on the business’s open blog. However, the driver later shared that the CEO has never personally apologized for the incident and does not seem to have many regrets about it. As a leader, Kalanick employs a strategy that prioritizes winning at any cost. Although it can be a strength, it is also the executive’s major flaw.
Kalanick undoubtedly embodied the archetype of a technology sector inventor. He is youthful, loud, and enthusiastic, known for his fervor and pretentious attitude. Many people who had seen him over the years attributed him to being irresponsible, albeit effective (Eames, 2018). However, the footage of Kalanick’s altercation with the Uber driver exposed the negative aspects of Uber’s top executive and highlighted another unfavorable personality trait: immaturity. Therefore, I would also suggest that he use his communication power not to create a particular public image, but to build strong professional relationships within the organization.
Organizational Culture
Like any other company founder or early executive, Kalanick left his mark on Uber with his personality and leadership style. Kalanick’s ideals and ethics had a profound impact on the organizational culture of the corporation. A list of 14 key values Kalanick provided to staff members before a business conference in Las Vegas in 2014 included some of these principles and practices. “Toe-stepping,” “always be hustlin’,” “hyper amped,” and “principled confrontation” were among the expressions on the list (Eames, 2018).
Similar thinking had existed since the company’s inception, as evidenced by the discovery, made just before his resignation in June 2017, of a profanity-filled letter Kalanick had addressed to staff in 2013 (Eames, 2018). The memo specified specific regulations for sexual relationships between coworkers and established “rules” for an upcoming business party in Miami, which included a fine for vomiting and a ban on keg throws from building rooftops.
I would ask senior management how they feel about those rules and the founder’s encouragement regarding this information. Do they agree with them? Will they change the corporate rules, or will they leave them in that informal manner? At Uber, unethical behavior was often the norm, and the company’s widely reported actions undoubtedly influenced how the public perceived the business.
For instance, Uber’s disagreement with its drivers was the subject of countless articles in the press, blog entries from Uber, and social media posts from past and current drivers. According to internal metrics used by Uber to gauge driver satisfaction, turnover among drivers averages 25% every three months(Eames, 2018). Uber maintained its decentralized organizational structure, prioritizing the autonomy of regional offices to expand swiftly (Eames, 2018). Employees reported that making forward progress frequently involved disparaging departmental managers or coworkers.
Employees who reported issues to human services claimed they were frequently abandoned (Dudovski, 2021). They claimed that because high achievers may enhance the company’s health, human resources frequently created an exception for them (Dudovski, 2021). Firings were less frequent, sometimes moving troublesome supervisors who had received several complaints to new locations.
In San Francisco, Uber engaged in dubious behavior when dealing with Lyft, a competing ride-hailing service (Eames, 2018). Employees of Uber made reservations with Lyft drivers and then canceled them. Uber also used “brand ambassadors” to make reservations with Lyft drivers while attempting to recruit them to work for Uber (Eames, 2018).
Uber also acquired consumer analytics from Lyft and utilized the data to assess Lyft’s financial standing. Uber has assembled a formidable legal team and engaged a private detective to speak with the friends and associates of its legal rivals. It employed numerous political operators to persuade decision-makers at all levels of the government, including the Obama administration, of the corporation’s merits. Such an incident is inappropriate, and I would feel compelled to discuss it with senior management, as it affects the company’s image and sets a wrong example for employees.
Moreover, I recommend that they implement innovations in the company’s work. At this phase, employees must be informed at all levels about the need for cultural changes to support the company’s long-term growth prospects. The CEO should emphasize the value of a suitable corporate culture. It would also be helpful to ask employees to create and vote on workplace culture guidelines (Dudovski, 2021). It is necessary to prepare people for the innovations and have an open conversation with them about them.
After that, I suggest that the senior management implement the new rules immediately. Specifically, these should be the ones that promote respect, dignity, and honesty among employees, clients, and managers within the organization. The processes should be fair and transparent, without unethical schemes and behaviors.
Uber must make an effort to spread awareness of its diverse cultures to all parties involved in the company, including employees. It is essential to remember that Uber’s corporate culture will take some time to evolve, given its business strategy. The multinational cab technology firm relies on independent contractors, also known as third-party drivers, to deliver its services to end consumers (Dudovski, 2021). Since it may be more challenging to influence the behavior of independent contractors than that of employees, Uber’s top management will need to continually create and maintain a positive workplace culture.
Organizational Behavior
Uber’s aggressive mindset and disregard for laws are well known not only within the company but also outside. The business embodied the reputation of the whole Silicon Valley IT sector. Examples include CEOs’ general disregard for rules, propensity for breaking the law, aggressive anti-union position, and boys’ club environment that undervalued female employees and was frequently rife with sexual harassment (Eames, 2018). Uber also utilized technologies and other cyber tools to evade law enforcement officers investigating its business practices (Eames, 2018).
Uber uses a range of psychological strategies to control the places, times, and lengths of labor for its drivers. These strategies included non-cash incentives that persuaded drivers to work longer hours by utilizing visuals and video game tactics. To keep labor expenses as low as possible, the corporation frequently required employees to work in locations and at times that were less lucrative for them than others. The company’s inherent efficiency occasionally turned against it, as faster pickup times often led to increased driver downtime, resulting in drivers logging out of service.
Uber warned drivers when they were close to hitting their earnings targets to stop this from happening. Since many people felt comfortable setting financial goals, some drivers chose to remain available. While Uber was worried about a lack of drivers in locations where demand was present or anticipated, drivers were worried about making a living wage.
Uber tried to get drivers to work mostly during peak hours to meet dollar objectives. Uber sent a constant onslaught of emails, messages, and pop-up windows through the program to grab the drivers’ attention and get them where they needed them to be. Little maps with symbols that showed where they needed to go were occasionally included with these communications.
Therefore, it may be claimed that Uber has conventionally approached motivation. The strategy assumes that money is the primary motivator for workers, and the stated premise is accurate to a certain extent. Due to this presumption, drivers have become stubborn and will do everything to get money, even working extra hours. It should be highlighted, nevertheless, that the human resources strategy works best for Uber. This strategy ensures that the business recognizes its workers’ contributions and creates a pleasant working environment.
Several theories have been developed to explain motivation. However, the need-based motivational theory will be the exclusive topic of discussion. Uber drivers have several needs that have not been met. As a result, drivers continue to break the law and put in extra hours despite the company’s incentives. In turn, they put lives in jeopardy.
Physiological requirements are the most important in the need hierarchy since they also cover an employee’s security needs. The lack of baseline pay for Uber drivers breeds worries that they cannot support themselves. This is a physiological and security necessity.
Since Uber maintained a low salary limit and used game strategies to influence its drivers, one may claim that its use of behavioral science was exploitative to its drivers. Uber coerced its full-time workers in ways that forced them to continue working low-paying jobs and persuaded others to run side companies, which prevented them from making ends meet (Isaac, 2018). When Uber’s management realized they were experiencing a major culture crisis, the insight was unquestionably significant. Top executives held a news conference and revealed they had been reevaluating their interactions with their workers, who had long complained about their lack of respect and declining pay.
Conclusion
Overall, Uber’s management under Travis Kalanick and his leadership, in general, provides many insights into the situation happening in the company. Despite having multiple advantageous qualities for the leader, Kalanick used them in a destructive and unethical manner, creating a disadvantageous corporate culture and organizational behavior. As CEO, he leverages his communication skills not to shape a specific public image but to foster strong professional relationships within the company. Uber must actively promote awareness of its diverse cultures among all stakeholders, including employees. The CEO should highlight the importance of cultivating a positive corporate culture and involve staff in restructuring, as the earlier approach had significantly harmed them.
References
Dudovski, J. (2021). Uber organizational culture: A brief overview. Business Research Methodology.
Eames, R. (2018). Uber: Kalanick’s tumultuous era. Ivey Publishing.
Isaac, M. (2018). Inside Uber’s aggressive, unrestrained workplace culture. New York Times.