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Uber has had phenomenal growth, going from four people in 2009 to the two kinds of workers it deals with today: (1) 22,000 full-time nondriver employees, such as those working in its San Francisco headquarters,' and (2) about 3.9 million active drivers globally, the independent contractors it calls "partners."2 Uber's Employees Former CEO Travis Kalanick viewed human resources (HR) as having one function – recruiting. Other HR functions were not a priority for Uber. For example, the company had fewer than 10 HR representatives in 2016 who were responsible for training managers and handling issues such as sexual harassment for the 6,000 employees it had at the time. "When HR becomes solely a talent race, boards and CEOS can miss the less obvious but equally vital value of managing both new hires and leaders who are facing increasing demands," says John Boudreau in a Harvard Business Review article.4 Kalanick's lack of focus on HR created a toxic atmosphere at the organization. Much of this became evident with Susan Fowler, a former Uber engineer. Fowler claimed in a February 2017 blog that she was sexually harassed by her supervisor and that HR ignored her claims. Other employees have since reported that a premium was placed on workers who delivered strong performance and aggressive growth, and that their inappropriate workplace behavior was overlooked, according to the New York Times.5 Uber attempted to improve this situation by focusing on the accuracy of its performance evaluations. In the past, performance reviews were subjective with managers simply meeting behind closed doors and ratina their emplovees. This obviouslv increased the potential for

Uber has had phenomenal growth, going from four people in 2009 to the two kinds of workers it deals with today: (1) 22,000 full-time nondriver employees, such as those working in its San Francisco headquarters,' and (2) about 3.9 million active drivers globally, the independent contractors it calls "partners."2 Uber's Employees Former CEO Travis Kalanick viewed human resources (HR) as having one function – recruiting. Other HR functions were not a priority for Uber. For example, the company had fewer than 10 HR representatives in 2016 who were responsible for training managers and handling issues such as sexual harassment for the 6,000 employees it had at the time. "When HR becomes solely a talent race, boards and CEOS can miss the less obvious but equally vital value of managing both new hires and leaders who are facing increasing demands," says John Boudreau in a Harvard Business Review article.4 Kalanick's lack of focus on HR created a toxic atmosphere at the organization. Much of this became evident with Susan Fowler, a former Uber engineer. Fowler claimed in a February 2017 blog that she was sexually harassed by her supervisor and that HR ignored her claims. Other employees have since reported that a premium was placed on workers who delivered strong performance and aggressive growth, and that their inappropriate workplace behavior was overlooked, according to the New York Times.5 Uber attempted to improve this situation by focusing on the accuracy of its performance evaluations. In the past, performance reviews were subjective with managers simply meeting behind closed doors and ratina their emplovees. This obviouslv increased the potential for

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Uber drivers may purchase 7x7 Experience quality improvement classes. These are examples of

Multiple Choice
  •  
    on-the-job learning and development.
  •  
    compensation.
  •  
    incentives.
  •  
    benefits.
  •  
    off-the-job learning and development.
This part of the Uber continuing case focuses on Chapter 9 and covers principles related to human resource management. This continuing case’s real-world application of management knowledge and skills is designed to help you develop your critical thinking ability and realize the practical power of sound managerial skills for solving problems in your job and career. **Read the continuing case and respond to the questions that follow.** Uber has had phenomenal growth, going from four people in 2009 to the two kinds of workers it deals with today: (1) 22,000 full-time nondriver employees, such as those working in its San Francisco headquarters,¹ and (2) about 3.9 million active drivers globally, the independent contractors it calls “partners.”² **Uber’s Employees** Former CEO Travis Kalanick viewed human resources (HR) as having one function—recruiting. Other HR functions were not a priority for Uber. For example, the company had fewer than 10 HR representatives in 2016 who were responsible for training managers and handling issues such as sexual harassment for the 6,000 employees it had at the time.³ “When HR becomes solely a talent race, boards and CEOs can miss the less obvious but equally vital value of managing both new hires and leaders who are facing increasing demands,” says John Boudreau in a *Harvard Business Review* article.⁴ Kalanick’s lack of focus on HR created a toxic atmosphere at the organization. Much of this became evident with Susan Fowler, a former Uber engineer. Fowler claimed in a February 2017 blog that she was sexually harassed by her supervisor and that HR ignored her claims. Other employees have since reported that a premium was placed on workers who delivered strong performance and aggressive growth, and that their inappropriate workplace behavior was overlooked, according to the *New York Times*.⁵ Uber attempted to improve this situation by focusing on the accuracy of its performance evaluations. In the past, performance reviews were subjective with managers simply meeting behind closed doors and rating their employees. This obviously increased the potential for --- The document contains general information text and does not include specific graphs or diagrams. The content focuses on Uber's HR management practices and related issues.
Transcribed Image Text:This part of the Uber continuing case focuses on Chapter 9 and covers principles related to human resource management. This continuing case’s real-world application of management knowledge and skills is designed to help you develop your critical thinking ability and realize the practical power of sound managerial skills for solving problems in your job and career. **Read the continuing case and respond to the questions that follow.** Uber has had phenomenal growth, going from four people in 2009 to the two kinds of workers it deals with today: (1) 22,000 full-time nondriver employees, such as those working in its San Francisco headquarters,¹ and (2) about 3.9 million active drivers globally, the independent contractors it calls “partners.”² **Uber’s Employees** Former CEO Travis Kalanick viewed human resources (HR) as having one function—recruiting. Other HR functions were not a priority for Uber. For example, the company had fewer than 10 HR representatives in 2016 who were responsible for training managers and handling issues such as sexual harassment for the 6,000 employees it had at the time.³ “When HR becomes solely a talent race, boards and CEOs can miss the less obvious but equally vital value of managing both new hires and leaders who are facing increasing demands,” says John Boudreau in a *Harvard Business Review* article.⁴ Kalanick’s lack of focus on HR created a toxic atmosphere at the organization. Much of this became evident with Susan Fowler, a former Uber engineer. Fowler claimed in a February 2017 blog that she was sexually harassed by her supervisor and that HR ignored her claims. Other employees have since reported that a premium was placed on workers who delivered strong performance and aggressive growth, and that their inappropriate workplace behavior was overlooked, according to the *New York Times*.⁵ Uber attempted to improve this situation by focusing on the accuracy of its performance evaluations. In the past, performance reviews were subjective with managers simply meeting behind closed doors and rating their employees. This obviously increased the potential for --- The document contains general information text and does not include specific graphs or diagrams. The content focuses on Uber's HR management practices and related issues.
**Uber’s Human Resource Improvements and Challenges** Uber made two significant changes in 2017 to address issues with its employee appraisal system. The company set measurable goals for all employees and made these transparent. They also introduced a 360-degree performance appraisal system, which involved committee reviews of self-evaluations, peer evaluations, and manager evaluations. This was intended to ensure fair bonus distribution. Despite these improvements, challenges remained. HR Chief Liane Hornsey resigned in July 2018 due to ongoing employee dissatisfaction. According to *Wired Magazine*, employees still distrust the systems, expressing grievances publicly. This indicates that efforts to build internal trust have not been fully successful. **Uber’s Drivers** Uber also faces issues with driver support. The company offers limited development resources, providing only a 13-minute training video on delivering good service. Drivers must purchase additional training themselves to achieve quality scores. Uber partnered with 7x7 Experience to offer virtual courses at $49 each, with an optional “Tip Maximization” course for $10. These trainings are crucial as drivers undergo performance appraisals from passengers who rate them from 1 to 5 stars after each trip.
Transcribed Image Text:**Uber’s Human Resource Improvements and Challenges** Uber made two significant changes in 2017 to address issues with its employee appraisal system. The company set measurable goals for all employees and made these transparent. They also introduced a 360-degree performance appraisal system, which involved committee reviews of self-evaluations, peer evaluations, and manager evaluations. This was intended to ensure fair bonus distribution. Despite these improvements, challenges remained. HR Chief Liane Hornsey resigned in July 2018 due to ongoing employee dissatisfaction. According to *Wired Magazine*, employees still distrust the systems, expressing grievances publicly. This indicates that efforts to build internal trust have not been fully successful. **Uber’s Drivers** Uber also faces issues with driver support. The company offers limited development resources, providing only a 13-minute training video on delivering good service. Drivers must purchase additional training themselves to achieve quality scores. Uber partnered with 7x7 Experience to offer virtual courses at $49 each, with an optional “Tip Maximization” course for $10. These trainings are crucial as drivers undergo performance appraisals from passengers who rate them from 1 to 5 stars after each trip.
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