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Organizational Change: Each Has Specific Reasons Why It Will Need To Be Implemented in The Organizations

The document discusses organizational change drivers and issues at Uber. It identifies 19 common drivers of organizational change including human resources, customers, technology development, and competitors. It then discusses current issues at Uber including the need for a change in organizational culture and leadership to address a toxic culture. Risks like legal issues classifying drivers as employees and threats like increasing competition are also examined. The document recommends recruiting a transformational leader to change Uber's culture and implement operational improvements with full board support.

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Ayesha awan
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86 views3 pages

Organizational Change: Each Has Specific Reasons Why It Will Need To Be Implemented in The Organizations

The document discusses organizational change drivers and issues at Uber. It identifies 19 common drivers of organizational change including human resources, customers, technology development, and competitors. It then discusses current issues at Uber including the need for a change in organizational culture and leadership to address a toxic culture. Risks like legal issues classifying drivers as employees and threats like increasing competition are also examined. The document recommends recruiting a transformational leader to change Uber's culture and implement operational improvements with full board support.

Uploaded by

Ayesha awan
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Each organizational change has specific reasons why it will need to be implemented

in the organizations. Some experts talk about sources, some of them about forces,
and some use the word drivers. But, each of these words represents the thing that
will cause an organizational change in an organization.

Let’s go with a list of possible drivers of organizational change.

1. Human resources

2. Customers

3. Changes in legislation

4. Technology development

5. Competitors

6. Key Performance Indicators

7. Business Growth

8. Globalization

9. International laws, politics, and agreements

10. Management

11. Changes in the world and domestic economy

12. Internal problems in the organization

13. Organizational structure

14. Organizational resources

15. Strategy

16. Change in government politics

17. Organizational reduction


18. Availability of capital

19. Suppliers

If Uber exerts too much control over its drivers, it risks providing evidence to the many lawyers
who accuse the company of treating its independent contractors as employees. But like any
company, Uber also wants to provide great service to its customers, which usually involves
telling workers what to do. A new case study details how the company has figured out how to
walk a fine line by using its app and notifications as management tools.

Current significant issues


Now that the CEO has stepped down, this does not removed the problem. The need for a change in organisational
culture is something that will require an exceptional leader to implement. Kalanick is still a member of the board and
still has influence as the founder of the organisation. The need for change will need the full backing of the board to
remove the issues of toxic culture in the organisation.

Most cultural reform initiatives assume significant capacity development on the part of individuals, as well as whole
organisations. Transformational approaches to leadership have long been advocated as productive under conditions
fundamentally the same as those faced by Uber (Leithwood & Jantzi 2000, pp 112). Leaders who facilitate knowledge
sharing and engender trust contribute to team effectiveness and performance (Lee et al. 2010, pp 473). Culture is not
something an organisation has, but something an organisation is and management cannot control culture because
management is a part of that culture, thus the need for a leader that will effect real change (Lee et al. 2010, pp 63-64).

Current Risks
The conflict with Uber drivers over whether they should be considered employees or contractors is a colossal financial
drain for Uber. Many drivers think they should be fully-employed by the company, which would be tremendously
expensive. In 2016 Uber drivers in the UK won a key employment case with the ruling by the London employment
tribunal, which would mean that they are entitled to holiday pay, paid rest breaks and a minimum wage. The tribunal’s
decision “may have an impact on how Uber operates in other countries.

Not removing Kalanick from the CEO position would increase the distrust of the organisation and thus increase such
movements as #DeleteUber. Increasing an ideology that portrays a culture that enlightens workers to deliver their
potential will only benefit the organisation in the long term (Sinclair 2005, pp viii). Crucial aspects of leadership
performance are associated with the macho way of doing things.  Women executives are now widely recognized as
critical engines of national, regional, and global growth, and increasing their presence in the executive management
and even in the board will diminish the “Boys Club” mentality (Cirera & Qasim 2014, pp 17).

Threats
Drivers are increasingly becoming more upset about their diminishing profit margins, as Uber increases its percentage
of each ride, from 20% to 25%. This is likely to lead to further bad publicity, as driver take to social media or even
demonstrate.

Increasing competition will ultimately lead to decreased prices. This will discourage drivers from joining Uber in newer
markets, as driver don’t earn as much. This will result in loss of customers, as they swap to cheaper models. Uber’s
revenues will decline. As new markets and drivers are joining, fraud and scandals are also increasing. It is damaging
for the brand.

Not only is Google developing Self-driving cars, which will eliminate the need for Uber, but it is also suing Uber for
allegedly using illegally obtained technical documents for its autonomous vehicle project. A project that is crucial to
Uber’s long term future.

Recommendations
It is imperative that a recruitment drive be initiated that will attract the sort of transformational leader to change and
monitor the organisational culture. This person will need impeccable skills and a proven track record for not just
organisational culture improvements but also operational improvements. This can only be achieve with full backing of
the board.

Uber has changed the way its bonuses work. Instead of handing over a lump sum after a driver hits
a set number of trips in a set amount of time, Uber now lowers the company’s take, increasing the
driver’s pay for future rides. A driver who may have once paid out 20 percent of each ride to Uber
may now have to give the company only 15 percent once they hit their ride goal; that may prompt
some drivers to stay on the road to earn bonuses. (The goals are set region by region, but drivers
say that the thresholds now are generally lower than they were when Uber handled out a cash
bonus.)

Last month, Uber also launched what a spokesperson called “an initial test” at three California
airports, which allow drivers to set their own fare “multipliers” for base fares, travel times, and
distance rides. The setting allows them to bid and even undercut the prices that other drivers are
willing to accept—and may allow Uber to argue that drivers play a role in setting their own prices,
as other independent contractors do.

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