Leadership, Strategy, and Change in Human Resources Through Training: Uber Case
Your Assignment: Group Task
- Choose any multinational organisation from within any sector of your choice.
- Acting as Consultants to the organisation, you are to design a training programme for the company’s managers.
- Produce a report that addresses the tasks below.
Task-1: Conduct Training needs analysis (TNA) (40 marks)
This will involve identifying and understanding the needs of your chosen company as far as the skills and knowledge development of managers is concerned.
Task 2: Designing and cost a suitable training programme (20 marks)
Typically, your training programme should be for a given period – for example, six months or a year Budgets are absolutely key to this process hence you are required to cost the programme so that the company can budget and fund it appropriately.
Task 3 Produce an outline for a reasonably detailed training programme (40 marks)
Draw up a detailed plan of what it will involve and what the outcomes will be. The content should be justified and aims, and objectives given. As well as helping to address development needs on an individual and group level, the programme must also help to deliver overall business and organizational objectives.
Executive Summary
The paper has taken the case of Uber and concepts of strategic human resource management and leadership have been employed. It has been noted in the paper that Uber does not consider drivers as its regular and permanent employees. Moreover, drivers are losing satisfaction and motivation while working for the company. Training need analysis has been conducted, and outcomes of training have been detailed along with budget and implications of training. It has been highlighted that Uber has a problem with its managers as they should be more connected, aware, and collaborative with drivers. There is a lack of knowledge and skills among managers regarding drivers. It is also one of the strongly risky aspects of Uber because the company has a poor human resource policy. Managers should be trained so that they can play their role strategically and in leading the way. In the end, recommendations and conclusions were drawn.
Introduction:
Human resource management is the field of managing the human resources of an organisation. Strategic human resource management has a broader and far-reaching approach in human resource management. The strategic aspect of HR considers years to come so that the organisation keeps progressing at a faster pace. To keep the company on track of success and progress, companies give special emphasis and importance to the development of leadership. Training and development of skills and knowledge among members of a company come as a way to develop leadership in the company. This is what has been done in this paper where managers of Uber have been focused in terms of training need analysis. Uber has faced issues regarding its employees where they have complained about low margins and declining profits for them. Drivers of the company find themselves unprotected as they are not regular employees of the company. They are entitled to monetary compensation and benefits. Therefore, this paper has detailed training need analysis and training program for managers so that they can furnish their knowledge and skills about employees and to become a successful leader of the company.
Task One:
Problems faced Uber in human resource management show that the company requires training for its managers as far as their skills and knowledge development is concerned. For this purpose, training need analysis should be conducted so that training needs can be highlighted. The training needs analysis or TNA may have at least three parts which are going to be used for the analysis of Uber.
Skills and Knowledge of Uber Managers:
This is the first step in training need analysis, and it is about current skills and knowledge possessed by Uber managers. The company earns revenues from the margins as a result of drivers and customers’ bargains. However, managers of the company who are responsible for management and decision-making tasks in the company should be able to understand the concerns of drivers working with the company. The company does not consider drivers as permanent employees, which means that they are not entitled to rewards and compensation packages like permanent employees. Increasing dissatisfaction among Uber drivers because of low margins and lack of monetary benefits are related to the compensation management of the human resource management department. It is noted that the company’s managers have little knowledge about these concerns of drivers, and they are mainly focused on the rapid expansion of the company. Moreover, they are overwhelmed with the high acceptance of service among customers. Recently, the company has faced stiff competition in different markets across the globe and managers have to enrich their knowledge and skills to manage drivers in an effective manner (Manna, Singh and Shamra, 2016).
Evaluation of Skills and Knowledge of Uber Managers:
Uber managers seem to lack knowledge and skills to understand the drivers and their growing concerns. Cases of sexual assaults, driving while drinking and accidents are all examples of this fact that managers are not considering issues of drivers. It may be the reason that drivers are not permanent or regular employees of the company. The growing dissatisfaction of drivers is a human resource management issue. It is hard to find that Uber has any survey or communication with these drivers to know the facts behind this behaviour. The human resource management issue also relates to permanent managers that they have to work in an innovative environment within the company. The business model and processes are all intensified and streamlined with an excellent idea empowered by technology. In such an environment, human resources may be ignored, and it is the case with Uber. However, the main finding from this evaluation is a lack of cohesion of managers with drivers. In reality, these drivers are the backbone of the company’s business and profitability.
Skill and Knowledge Gap among Uber Managers:
It is the third part of training needs analysis in which skill and knowledge gap among Uber managers can be identified. There is a growing need for a greater level of understanding and consideration of drivers with managers. In reality, it is not the case. Managers are also being ignored as reports suggest the company lacks focus on human resource management.
On the other hand, voices are growing about the status of drivers and their compensation packages. They are compensated for their services and bonuses, and other rewards are given to them. But they are not given priority as regular and permanent employees. The Major reason for this treatment with the drivers is a skill and knowledge gap among Uber managers, and there is a need to fill this gap through training. The training need analysis has identified this problem with drivers at Uber that managers should be given authentic and relevant knowledge for considering drivers’ concerns. Moreover, managers should be able to develop skills for this purpose, as well.
Task Two:
Time duration and cost of training are very important to consider. Moreover, resources to be delivered during the training program have to be decided, as well. Cost and budget of the training program have to be decided. These important elements of training are going to be discussed briefly in the following:
Time and Place of Training:
The training for managers should initially be one month long, and it would be classroom training. However, the nature of training would be a conversation where managers or participants of training would be provided with opportunities for interaction with drivers. It is better to start the training at all locations where the company is present globally. One month has been chosen to be able to assess the results of training.
Needed Resources:
Financial and knowledge resources would be required for the training program. Financial resources would be included under the budget section in the following. However, knowledge resources can be discussed here. A trainer would be hired who would prepare special and adapted knowledge resources for Uber managers. Live interaction with drivers would also be ensured. However, enrichment of knowledge and enlargement of vision of participants can be possible only if they are given material about the importance of human resources. Managers would be given information that today, companies are interacting closely with suppliers and drivers are more important than suppliers in the Uber business model (Nwlink, 2015).
Budget:
Cost and budget of training program would be consumed in the preparation of MS PowerPoint slides, salary to a professional trainer, utility expenses on electricity, availability of furniture and fixture, and miscellaneous expenses. To provide the training from one place in many locations, the company would also spend on video conferencing equipment. The professional trainer would be given for this one-month trial training program equal to $15000. PowerPoint slides and audiotape would be developed by $45 per slide. If 10 slides a daily and training take place 25 days in the month, then the cost of audio and PowerPoint slides would be around $11000. ELearning designers and online equipment like video conferencing would also be bought at market rate. This budget estimate is for 50 participant class maximum at one place. The budget would be around $150,000 per month. The amount should be spent on training, but it may vary when actual training would start (Einarsen et al., 2019).
Task Three:
Training need analysis has identified the need for training. There is a gap between managers regarding knowledge and skills about drivers and expected outcomes from training would enrich more knowledge and skill set among managers for drivers.
Aims and Objectives to be met from Training:
Training needs have been identified, and there are aims and objectives to be met through training. It is the aim of training that Uber managers can work collaboratively with drivers. Objectives of the training include they can solve driver dissatisfaction issues. Uber managers can treat drivers as regular employees and taking their consideration becomes central to their job duties.
Outcomes on an Individual and Group Level:
Developmental needs have been identified in task one that managers have to develop knowledge and skills towards understanding and to bring satisfaction to drivers. Drivers are associated with many issues which can affect the company negatively in the long run and the short run. Sexual harassment issues, car accidents, and increasing lack of motivation among drivers indicate developmental needs for drivers. If these needs are considered and development is ensured for managers, then direct outcomes at the individual and group level can be found (Katz et al., 2018).
Managers would find outcomes on an individual level so that they will be able to embrace the critical importance of drivers. Satisfaction and motivation of drivers would be each manager’s responsibilities. Managers would individually understand that their job is not only technology intensive, but it is equally human resource intensive as well. Every manager would be highly knowledgeable about drivers and the communication gap between both would diminish as a result of training. These benefits for individual managers are in line with research evidence that training and development after proper training need analysis have positive outcomes for receivers of training.
Group level outcomes would also be in line with individual outcomes, but group-level outcomes would be more far-reaching and comprehensive. Group level benefits of training for managers would lead to developing a culture in the company which has been under criticism for lack of focus on human resources of the company. Uber always faces a trade-off between technology and human resources where both are equally important. Each customer can be given excellent service with a separate driver. Therefore, managers receiving the training would be able to embrace this fact of the importance of drivers. It is a typical flow of effects within any organisation which starts with an individual and then affects a group. Then, group-level changes and developments lead to organisation aide changes. Thus, overall business and the organisation would get positive outcomes and benefits (Katz et al., 2018).
Implications for the Overall Business and Organizational Objectives:
Uber is finding ways of being sustainable and profitable internationally. Its rapid growth has surprised many, but it is still under criticism over its business model. One of the origins of such criticism is related to competition in different countries. However, the most important reason is related to human resource management. The business and organisational objectives of the company can be met if all of the employees and drivers remain committed and satisfied. In case drivers consider the company a second priority or time pass option, then the company might see high turnover in the future. For this purpose, managers of the company should have a strong bond with drivers. It would serve the business and organisational objectives of the company to offer superior customer value (Ghaffary, 2019). Moreover, problems and issues emerging from poor human resource management can be reduced and eliminated ultimately if Uber introduces training of managers. These implications for Uber show that training needs should be responded to with effective intervention so that the company can protect and sustain its culture.
Summary and Conclusion:
Uber requires strategic human resource management so that it can develop its key personnel and managers as leaders. Developing leaders in the company can ensure a sustainable future in the long run or strategically. Training and development have been taken as a way to achieve this target where Uber managers would be provided with training so that they can better manage and interact with drivers of the company. It was found that the company has unsatisfied drivers, and there are no negative incidents in different parts of the world in which drivers are found to be involved. Moreover, it is also noted that drivers are not considered as permanent employees of the company, and they lose motivation in the company. To solve the problem and make managers as true leaders for them, training has been proposed so that drivers can interact with managers effectively.
It is recommended strategically that Uber has to focus on its human resources. Technology and human resources should be taken equally important because both have the ability to make the company successful. It is also recommended introducing training programs for Uber managers so that they can engage well with drivers. Getting drivers’ satisfaction and motivation is recommended to be the priority of Uber.
References
Einarsen, K.D.S., Einarsen, S.V., Skogstad, A. and Mykletun, R.J. (2019) ‘Antecedents of ethical infrastructures against workplace bullying: The role of organizational size, perceived financial resources and level of high-quality HRM practices’, Personnel Review, vol. 48, no. 3, pp. 672-690.
Ghaffary, S. (2019) The Uber strike shows how drivers remain one of the company’s biggest liabilities, [Online], Available: https://www.vox.com/recode/2019/5/7/18528512/uber-driver-strike-gig-economy-labor-dilemma [11 August 2019].
Katz, B., Jaeggi, S.M., Buschkuehl, M., Shah, P. and Jonides, J. (2018) ‘The effect of monetary compensation on cognitive training outcomes’, Learning and Motivation, vol. 63, no. 1, pp. 77-90.
Manna, R., Singh, A. and Shamra, P. (2016) ‘Does Training Need Analysis Help to Minimize Competency Gap: An Investigation’, Amity Journal of Training and Development, vol. 1, no. 1, pp. 109-131.
Nwlink (2015) Estimating Costs and Time in Instructional Design, [Online], Available: http://www.nwlink.com/~donclark/hrd/costs.html [11 August 2019].
