Management

Posted: February 21st, 2020

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Management

Uber is facing a situation whereby some of its drivers have taken legal action as a way of solving their differences. The drivers’ main complaint is that Uber has not employed them but the company considers them as contractors. They want to be recognized as Uber employees. This will benefit them and make them eligible for some benefits such as social security and workers compensation. The drivers also want to be reimbursed for the expenses they incur since they have to fuel their cars and pay for maintenance from their pocket. The drivers are also demanding the tips they get. Uber hires drivers as independent contractors. Therefore, it does not consider them a part of the daily running operations of the company. The drivers’ complaints indicate that they were not aware of the terms of their working agreement with Uber. This unawareness could have resulted from lack of proper communication among all the parties involved. Uber is against a class lawsuit. It argues that the drivers do not perform the same function.

The fact that the drivers want to be recognized as Uber’s employees shows that they want to work for the company. They are willing to let go of the freedom that they have as contractors. This shows that the company has transformed their lives positively. According to the transformational leadership theory, people follow leaders who inspire them. Despite taking legal action, it is clear that the drivers see the company as a form of inspiration. Otherwise, they would not go to such extents trying to receive the recognition they want as employees. Transformational leaders convey the company’s goals, are able to take control of an emerging situation, and they have a passion for what they do. They are able to motivate and energize their employees. Uber should make all the drivers aware of its operations style. This will help in reducing miscommunication.