HUMAN RESOURCE CHALLENGES
Capturing Strategic Contribution
Word count: 1000 words
An individual communication created by: Ayesha Khalid
Student Number: 12733857
• With its presence in all major cities around the world, Uber is one of the most
prominent cab aggregators in the world.
• In recent times, they have been getting flak for inefficient human resources
management (Yoo, 2017).
• Numerous lawsuits have also been filed against them regarding their treatment
of their drivers.
• The need for special importance for
• Transparent policy for terminating employees
• Updating employability status
• Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource
management practice. Kogan Page Publishers.
• Bakker, A. B., Tims, M., & Derks, D. (2012). Proactive personality and job
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• Caillier, J. G. (2013). Satisfaction with work-life benefits and organizational
commitment/job involvement: Is there a connection?. Review of Public Personnel
Administration, 33(4), 340-364.
• Demarzo, P. M., & Sannikov, Y. (2016). Learning, termination, and payout policy in
dynamic incentive contracts. The Review of Economic Studies, 84(1), 182-236.
• Hijzen, A., Mondauto, L., & Scarpetta, S. (2013). The perverse effects of job-
security provisions on job security in Italy: results from a regression discontinuity
design. organizational citizenship behaviour and
• Jafri, M. H. (2012). Influence of psychological contract breach on trust.
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• Latham, G. P. (2012). Work motivation: History, theory, research, and practice.
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Philosophical Investigations, 14, 97. Lester, D. (2013). Measuring Maslow's
hierarchy of needs. Psychological Reports, 113(1), 15-17.
• Menguc, B., Auh, S., Fisher, M., & Haddad, A. (2013). To be engaged or not to be
engaged: The antecedents and consequences of service employee engagement.
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Management of the human resources in the contemporary business organizations is important due to the reason that the distinctive skills sets and the expertise that the employees possess is beneficial and required for the organizations to gain competitive advantages in the market (Armstrong & Taylor, 2014). Moreover, effective management of the human resources is important in order to enhance and maintain the level of motivation of the employees. This is due to the fact that, the more motivated and engaged will be the employees, the more will be their involvement in the organization, which will in turn increase the rate of effectiveness of the organization. Uber is one of the most prominent cab aggregators in the world with having their market presence in all the major cities around the world. However, in the recent time, they are drawing flak due to their ineffective management of the human resources (Yoo, 2017). Their treatment and handling the issues with their drivers have also attracted various lawsuits against them.
Breach to the employee contract Several issues related to the human resources are being identified from the above discussed article. One of the key issues being identified is deactivating the drivers without any prior notice. According to the lawsuit being filed by them, Uber is not communicating well enough with their drivers before deactivating their access from the system. This is a breach to the effective management of the employees (Jafri, 2012). Moreover, this is creating an unfair and unjustified impression among the employees. According to the Maslow's Hierarchy of needs, the basic needs or the physiological needs are food, water and shelter that is mandatory for the human beings (Lester, 2013). According to Maslow, if the physiological need cannot be effectively met, then the higher needs will not be met. However, in the case of Uber, the basic needs of the employees are not being effectively met. This is due to the reason that, the source of income of the drivers is being stopped if they are being deactivated from the system. Thus, Uber is not effectively meeting the need theory of Maslow in managing their employees. Lack Of Employee Benefits The second issue that is being identified is not treating the drivers as the employees. According to the organizational strategy of Uber, drivers are being considered as partners rather than employees. This is having two benefits for Uber. One is the positive impression of terming and considering the drivers as their partners rather than just employees. This creates goodwill and reputation of the organization. On the other hand, another benefit for Uber is non-adhering with the regulations related to the employee welfare and benefits (Spiro & Yuchtman-Yaar, 2013). Due to not considering the drivers as their employees, Uber is not bound to follow the regulations regarding employee benefits and welfare. However, this is also creating negative impression among the drivers. They are being deprived from the employees' welfare and benefits.
Uber should consider their drivers as their employees rather than their partners. It will help the drivers to feel more involved in the organization. They will be able to consider themselves as a part of the brand. Thus, it will increase their engagement and involvement in the organization, which will in turn enhance their level of motivation and productivity (Caillier, 2013). Providence of the employee benefits and welfare schemes will help the organization in enhancing the level of motivation in their workplace. Thus, the more motivated drivers of Uber will help them in providing the effective customer service. Uber should have a transparent and fair policy of terminating any employees. The policy statement should be well communicated to all the stakeholders in the organization. It will help the employees in having the awareness about the clause and regulations of the termination policy (Demarzo & Sannikov, 2016). This will refrain them in indulging in any unethical incidents. Moreover, in case of termination of a particular employee, Uber should effectively communicate with the employee about stating the reason of termination. The employee should also be given the chance of defense. This will help to create the transparency in the whole process of termination. The status of employability with the drivers of Uber should be checked due to the reason that the existing system of Uber has contractual relationship with their drivers. However, contractual employability will not motivate the drivers due to the reason that they will not feel engaged and involved in the organization (Bakker & Derks, 2012). On the other hand, if they can be given the permanent status along with initiation of incentives based on performance, then the productivity and the level of motivation of the drivers will be increased (Lazaroiu, 2015). They will treat themselves as a part of the organization and the average level of motivation and job engagement will get increased.