The behaviors and values that make an organization unique and stand out among other organizations constitute an organization’s culture. A company’s culture determines the norms and the habits inherent in a specific company as well as the management structure.
Uber Technologies Inc is a multinational company with its headquarters in California that specializes in providing food delivery, taxi cab services, and transportation network services to its customers worldwide. Various companies adopt varied organizational structures given that the structure that works for one company may not work similarly when adopted by another company. Subsequently, Uber can be viewed as having a highly hierarchical organizational structure where the chief executive officer wields near unlimited power.
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A hierarchical structure involves having all employees being subordinate to a powerful figure at the helm of the organization (Senior, & Swailes, 2016). A hierarchy mainly involves a single individual or a group of individuals who have total power at the top and have lower power levels beneath them.
Uber’s hierarchical structure has brought numerous challenges to the company’s efficiency. One challenge that has affected Uber’s operations and efficacy is the fact that the co-founder of the company which doubled up as the company’s chief executive officer had poor leadership skills. The officer’s leadership brought with it numerous bullying, sexual harassment, and discrimination cases at the workplace. According to Senior and Swailes (2016), a hierarchical structure requires a strong leadership able to direct daily operations of the organization smoothly.
Additionally, Uber experienced constant communication breakdown and lack of autonomy in decision making. A hierarchical structure results in poor flow of information making decision making hinder the efficiency of an organization affecting the business growth of an organization (Senior, & Swailes, 2016).
Reference
Senior, B., & Swailes, S. (2016). Organizational change . Harlow: Pearson.
