Management Theory This part of the Uber continuing case focuses on Chapter 2 and provides parallels to management theory. This cumulative 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 yourjob and career. Read the cumulative case and respond to the questions that follow. Uber is frequently touted as one the most spectacular success stories in Silicon Valley's historyA Within 10 years of its 2010 launch, it went from a one-city pilot-test to a multinational company with a $78+ billion dollar valuation, millions of drivers, thousands of full-time employees, and specialized divisions dedicated to things like self-driving and flying vehiclesA But Uber has also found itself mired in a barrage of scandals surrounding regulatory infractions in numerous countries, accusations of intellectual property theft, concerns about CEO Kalanick's erratic and aggressive behavior, and reports of a cutthroat, hostile, and sexist corporate work environment. Kalanick, along with at least 13 more top executives, ultimately resigned from Uber in 2017.'3 How does a company doing so many things right simultaneously get so many things wrong? Different management theories offer insight. Complexity theory, for example, teaches us that in dynamic environments such as the tech industry, a manager'sjob is to facilitate an organization's ability to swiftly adapt to its environment by allowing it to operate on the \"edge of chaos,\" giving workers the freedom to solve problems on their own terms rather than providing strict procedures, and encouraging a "healthy level of tension and anxiety in the organization to promote creativity and maximize organizational effectiveness.\"C Systems thinking also tells us that organizations unable to constantly improve based on feedback risk extinction. In other words, organizations need to learn in order to survive. Below we describe Uber under both Kalanick's (Uber's cofounder and CEO from 2010 to 2017) and Khosrowshahi's (Uber's present CEO) leadership. As you read, look for clues about the two CEOs' management philosophies, things that prevented Uber from learning, and things that helped Uber to become more ofa learning organization. Uber Under Kalanick As CEO of Uber, Kalanick encouraged employees to adopt core values that included \"winning,\" stepping on others' toes to get to the top, and ignoring coworkers' bad behavior as long as they were top performers.D He pitted workers against each other and reminded them that meritocracy was the center of the Uber universe. He encouraged "making bold bets," but made it clear that only top performance, not the act of taking risks, would be rewarded.E Former employees describe the environment under Kalanick's leadership as a frat house or a \"bro culture\" that felt unwelcoming, and even hostile, toward women, minorities, and other workers who weren't part of Kalanick's in-group.F Diversity numbers from 2018 show that women held only about 15% of technical jobs and 22% of leadership roles at Uber, putting the company's gender diversity numbers well below major tech companies like Amazon, Netix, Facebook, Apple, and Google.G In terms of racial diversity, over 80% of Uber's global workforce is white or Asian, with workers of Black, Latino, and other races comprising less than 20%.H While Uber's racial diversity is comparable to that of other tech companies, data shows that the percentage of Black workers at Uber is actually decreasing. Further, Kalanick encouraged internal competition and often had multiple teams compete against one another on the same projects. When Liane Hornseyjoined Uber as head of human resources, she quickly realized \"there was no sense oftrust, no sense of 'we're building this together.\" Instead she witnessed animosity, secrecy, and a lack of cooperation among Uber's employees.E A former worker described a \"Game of Thrones political war raging within the ranks of upper management" adding that \"it seemed like every manager was ghting their peers and attempting to undermine their direct supervisor so that they could have their direct supervisor'sjob.\"D Uber Under Khosrowshahi Khosrowshahi spent his rst two months as CEO meeting with Uber teams and employees across the globe to seek their input on what the company needed to repair itself and move forwardl Employees submitted thousands of ideas and voted on their favorites, and Khosrowshahi turned them into a new set of cultural norms for the company struggling to regain its employees' and the public's trust. \"Rather than ditching everything, I'm focused on preserving what works while quickly changing what doesn't,\" said Khosrowshahi. Here are some of Uber's cultural norms under CEO Khosrowshahi along with what the company has done so far to exemplify them: We act like owners. Uber wants its employees to look for problems and to solve them together, to help each other, and to be accountable for mistakes. Khosrowshahi believes \"Mistakes themselves are not a bad thing. The question is, do you learn from these mistakes?"E The CEO has made several public apologies for Uber's past transgressions. After London authorities banned Uber for failing to comply with regulations surrounding drivers' criminal backgrounds, he issued a letter stating \"While Uber has revolutionised the way people move in cities around the world, it's equally true that we've got things wrong along the way. On behalf of everyone at Uber globally, I apologise for the mistakes we've made. . . . We won't be perfect but we will listen to you; we will look to be long term partners with the cities we serve; and we will run our business with humility, integrity and passion."J We value ideas over hierarchy. Uber employees "believe that the best ideas can come from anywhere, both inside and outside our company. Ourjob is to seek out those ideas, to shape and improve them through candid debate, and to take them from concept to action.\" Khosrowshahi hired Bo Young Lee as Uber's first chief diversity and inclusion ofcer and she is working to develop strategies around hiring, training, and support groups at UbenK The company is also working to increase its diversity prole by building and strengthening recruiting relationships with outlets that serve underrepresented populations.L We celebrate differences. Uber wants all employees, regardless of their backgrounds, to feel welcomed, to be open to different approaches, and to come together to execute the best ideas.E Khosrowshahi has emphasized the important role of teamwork and collaboration at Uber and the company has modified its performance review system to encourage employees to work toward meeting their own personal goals rather than compete with each other.L CEO Khosrowshahi believes that Uber employees should act like owners and share power with managers. Which theorist would most strongly agree with this approach? Multiple Choice O Hugo Munsterberg O Henri Fayol O Mary Parker Follett O Max Weber O Charles Clinton Spaulding