Characteristics of the Organization: Uber

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CSR-Project
Characteristics of the Organization
Uber is one of the largest taxi services in the world. It was started in 2009 and has its headquarters in San Francisco, California. It offers taxi services as well as other services including food delivery and bicycle-sharing. Even though it is yet to break into every state in the U.S., it has grown and spread to more than 60 countries in the world. Currently, Uber is operational in more than 400 cities in the world. However, it has been involved in a lot of scandals which have plunged the company’s revenues to record lows. With a new CEO, the company has shown great stride and resilience in making up for lost time. In 2018, Zaveri and Bosa (2019) report that Uber “narrowed losses and continued to grow revenue, though at a slower pace than in the previous year.” They continue to note that the company’s self-reported financials show a growth upwards of 43 percent.
While the above can be considered good news, the company’s organizational structure has been scrutinized and criticized because it wielded a lot of power to the top-level management. Uber’s former CEO Travis Kalanick had a lot of power and thus micromanaged the company’s projects. The new CEO, Dara Khosrowshahi, has taken a different approach and appears to be delegating and empowering the employees. So, currently, the company can be said to have a decentralized structure of governance with department heads currently having a lot to do with the day-to-day decision-making responsibilities.
Company’s Management Theory
Initially, Uber’s management theory focused on emphasizing the powers and capabilities of those at the top. Travis Kalanick was the CEO and he micromanaged the company by exerting his presence all over the company’s agenda. Matherne and O’Toole (2017) note that Kalanick “determined Uber’s strategic direction, managed the firm’s resource portfolio, sustained the organization’s culture, and set ethical standards for Uber’s practices.” They continue to note that “his managerial approach became a concern, with some even questioning his tactics.” Under Kalanick, employees complained of sexual harassment and the company also suffered the loss of more than 200,000 passengers because of the #DeleteUbermovement. Kalanick’s tactics were failing and the company needed to rethink and find a solution to his flaws. Him micromanaging the company meant that employees were afraid of sharing their views and thus left while others sued the company. Currently, the company’s management theory appears to be centered on empowering its employees. Dara is sharing power and is not exerting his presence like Kalanick did.
Summary of Ethical Issue
Uber has b...