INTRODUCTION
Business is a game of planning. Uber Company has a multidivisional structure. It helps the company to diversify its product line for customers in different regions. The organization design depicts the process, structure, and roles in the company to realize business goals. The management intends to sustain the organizational design of the company that supports growth and expansion as well. Uber has an effective organizational design, which streamlines different strategic units. Moreover, four building blocks of the company, including specialization, formalization, centralization, and hierarchy, has also been streamlined.
ORGANIZATIONAL DESIGN OF UBER
Directors of the company are normally from the top management level. The company is structured effectively. The structure of the company starts from the chief executive officer and board of directors. Directors of the firm look after operations, growth, and policy/community. Operations in different countries are separated. For Instance, operations in Asian countries are quite different as compared to other countries. Conversely, the chief executive officer of the company has been integrated with the legal, security, CTO, and production process. Furthermore, production section also depicts different sections such as product maps, advanced technology executive team, and deputy general manager. The organizational design of Uber Company demonstrates some key principles. For Instance, this company promotes talent at the top level. The management usually focuses on only those things that it can control effectively. The structure has also been evolved with time, as the management depends on the change to address different business problems (Griswold).
PRODUCT DIVERSIFICATION
Uber contains the product diversification. Uber is focused on the Uber app to facilitate the traveling. It seems peer to peer ridesharing process, which has been streamlined in different countries. People can use high-quality Uber app on their mobile phones and find the drivers to reach their destination. Fast and reliable rides are available for people in several regions, and this trend is increasing rapidly (Griswold).
Conversely, the Uber Eat is another prominent product. It is an effective food delivery platform for people. Uber depends on the Uber Eat app to facilitate customers in getting their favorite food from the local restaurant. Obviously, it reduces the cost and time of people. Uber Eat is a good app that connects people to many local restaurants and finds the best food quickly.
STRATEGIC UNITS
Uber has several strategic units. These units work independently and responsible for profit and loss. It is a fact that the company makes the separated structure in each unit. The management team in each strategic unit makes strategies, plans, and decisions to strengthen business operations. For Instance, in Asia, there is a different strategic unit, which streamlines its operations. Uber has three strategic business units. These units are corporate level, business level, and operational level. Interestingly, all these strategic units are integrated with each other, and overall, business needs and goals are met effectively (Cakebread).
FOUR BUILDING BLOCKS
Specialization
Specialization is a key process in Uber Company. The management divides tasks or activities at the individual level. Employees in the firm are assigned to the right task according to their qualifications, skills, and experience. Each employee is fulfilling its roles independence and integrating with other work processes. Uber enhances the high specialization that helps employees become masters of job activities, especially in the app development and control department.
Formalization
In Uber, formalization expresses some roles and procedures for job activities. For Instance, in the app development department, there is a comprehensive technology mechanism. The company trains employees to keep these rules and mechanisms in the loop. Uber carries formal and informal process. In the informal process, a chief executive officer is directly involved when designing the job specifications (Griswold).
Centralization
Well, instead of focusing on the centralized structure, the company is using the decentralized approach. It supports the democratic decision-making process in the company, as all key stakeholders are involved in the decision-making process. The company always wants to streamline some ideas and thoughts of people and delegates the decision-making process accordingly. It helps to operate effectively and efficiently in strategic units of the business (Cakebread).
Hierarchy
The organizational hierarchy includes the chief executive officer, directors, management teams, product and service specialists, legal team, and the bottom-line of the company. The leadership has been depicted at the top level, and decision-making process has been delegated. Due to business expansion and growth, the company contains the big hierarchy.
These are the top building block of the company, and the execution of the management team is remarkable. Successful operations often company has enabled the business sustainability in different countries. These building blocks of the firm from the design, process, culture, and structure are triggered by the organizational design. However, some changes can be conducted to integrate with some modern trends in the industry (Cakebread).
CONCLUSION
In the end, it is to conclude that Uber has gained the success due to its effective organizational design. The company addresses its business issues through its effective design. The organization design also streamlines efforts of all key stakeholders in strategic units. From ridesharing to Uber Eat, some strategic considerations such as improvements, quality, technology development, and expansion are necessary for the company to ensure the business sustainability and profitability. Obviously, these strategic considerations can create the impact on the organization, design, and the company is quite up to it. Uber, being a top travel giant, has to make the difference through its internal process and create some prominent entry barriers.
Work Cited
Cakebread, Caroline. “These are the 47 things Uber has agreed to do to change its company culture.” Business Insider. Business Insider, 14 June 2017. Web. 21 April 2018. http://www.businessinsider.com/47-ways-uber-is-changing-its-culture-2017-6.
Griswold, Alison. “Uber is designed so that for one employee to get ahead, another must fail.” Quartz. Quaartz Media LLC, 27 February 2017. Web. 21 April 2018. https://qz.com/918582/uber-is-designed-so-that-for-one-employee-to-succeed-another-must-fail/.
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