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SOUTHERN LUZON STATE UNIVERSITY COLLEGE OF ENGINEERING INDUSTRIAL ENGINEERING DEPARTMENT Lucban, Quezon

CASE STUDY IN INDUSTRIAL PSYCHOLOGY: “UBER PHILIPPINES: EMPLOYEE SELECTION (RECRUITMENT AND BEHAVIOR)”

SUBMITTED BY: MARIELLE O. JAVELOSA BSIE IV-GL

ENGR. LYNNEVEL R. AMPARO ADVISER

MARCH 21, 2019

Introduction Uber is a taxi-hailing service mobile application that allows any smart phone user to hail a for-hire vehicle without needing to physically be on the street. Founded in San Francisco, California in 2009, the company has since expanded its operations to 300 cities in 58 countries. Using the Global Positioning System (“GPS”) on smartphones, the application pairs passengers with drivers in a matter of minutes, hence eliminating the uncertainty of when a vacant cab would arrive, if any at all. Additionally, all transactions are managed by Uber – from charging the fare on the passenger’s credit card to taking a portion for itself and depositing the remainder to the driver’s bank account – making the transaction essentially cashless. As of writing, Uber is available in only one location in the Philippines: Metro Manila. Regulating UBER in the Philippines When it entered the Philippines over a year ago, Uber operated within the country without formal regulations. This lack of regulations prompted the House of Representatives (“House”) to insist that Uber suspend its activities until relevant government guidelines regarding the regulation of its service are issued and published. Both the House Committee on Transportation and the House

Committee on Metro Manila Development deemed it unfair that Uber could provide the same service with that of taxis without any regulation. To address this concern, the Department of Transportation and Communication (“DOTC”), through Secretary Jun Abaya, issued Department Order No. 2015-011 (“D.O. 2015-011”) which amended D.O. 97-1097, effectively amending the classification of public transport conveyances. The 2015 D.O. provided nationwide regulations for app-based transport services. The D.O. introduced a new type of classification called Transportation Network Vehicle Service (“TNVS”) that allows Transportation Network Companies (“TNC”) such as Uber to conform within the present regulatory framework. How to become an Uber driver in Manila To formally enter the Uber organization, one is required to follow six simple steps. Step One entails creating a “partner” profile. At this stage, Uber gives potential applicants a choice between being a “Partner-Driver,” wherein one will drive his/her own registered car, or a “Partner-Operator,” where a car owner hires another person to drive. Step Two involves the registration of the partner’s banking details. Step Three requires the partner to enroll his or her driver. Similar to the first step, a profile is created for the designated driver of the car. At this stage, the driver is required to submit several documents, such as a Professional Driver’s License and the Official Receipt thereof, a National Bureau of Investigation (NBI) Clearance, and a Philippine National Police (PNP) Clearance. Step Four requires the registration of the vehicle to be used. On top of this requirement, Uber demands that only models produced in 2007 and later are to be used. Moreover, Uber has a “Passenger Accident Insurance” policy for the vehicle, which provides for an annual service fee of Php 165 per passenger. Therefore, a car with a capacity of 5 persons (4 passengers and the driver) would entail a fee of Php 825 per year. After all registrations, Step Five is the Driver Orientation and Onboarding seminar conducted by Uber offices in Manila. Note that

only the drivers are required to attend, but owners who are willing to learn are not barred from joining. Step Six, which is the final step, is the release of the partner’s device. Uber allows their partners the option to rent a device, which they can eventually own, or to bring their own devices. However, the number of devices that can be issued will be limited to the number of actively registered drivers or actively registered vehicles, whichever is lower ISSUES FACED BY UBER 2015 *Alleged driver's arrogance and threatening the passenger life

2016

*Overcharging of fare

*Harassment, discourteous and threatening the life of passenger

*Sexual harassment made through text messages from a cellular phone

*Sexual harassment committed by driver

*Overcharging of fare, arrogant driver and threatening passenger

*Alleged system glitch of its application

*Alleged rape committed by the driver of his peer

*Alleged system failure of its application

*Vehicular accident

*Colorum

2017 *Alleged failure of its peer/partner to grant student fare discount

*Refusal to convey passenger

*Arrogant driver/overcharging of fare

*Failure to grant senior citizen discount

*Employing an arrogant/discourteous, reckless driver and for sexual harassment, involving its peer

OVERVIEW Employee Selection is the process of putting right men on right job. It is a procedure of matching organizational requirements with the skills and qualifications of people. Effective selection can be done only when there is effective matching. By selecting best candidate for the required job, the organization will get quality performance of employees. Moreover, organization will face less of absenteeism and employee turnover problems. By selecting right candidate for the required job, organization will also

save time and money. Proper screening of candidates takes place during selection procedure. All the potential candidates who apply for the given job are tested. But selection must be differentiated from recruitment, though these are two phases of employment process. Recruitment is considered to be a positive process as it motivates more of candidates to apply for the job. It creates a pool of applicants. It is just sourcing of data. While selection is a negative process as the inappropriate candidates are rejected here. Recruitment precedes selection in staffing process. Selection involves choosing the best candidate with best abilities, skills and knowledge for the required job. Next to remaining profitable, hiring talented, dedicated people is arguably the most important thing you can do for your small business to ensure its prosperity. Hiring decisions don't come cheaply, either, costing many employers at least $4,000 per employee. This is a number that can make you shudder, especially if you multiply it times the number of employees you need to operate your business. Still, if you're not afraid of making a mistake in the form of a “bad hire,” then you're not human. In other words, most small-business owners extend at least one job offer they wish they could take back. These experiences can supply great lessons, though, as can learning about current problems in the recruitment and selection process shared by other small-business owners. ANALYSIS

UBER has been a success service business in the Philippines, especially in Metro Manila. It have made structural changes to old industry in where individuals in need of a cab had to either physically wave at taxi or call local car service at least half an hour prior

to the pickup time. UBER made it possible to secure a car or taxi via smartphone from any location within minutes.

The changing society comes with the changes in organizations. Like any other organizations, UBER Philippines are now experiencing issues when it comes to their services and drivers.

Based on the issues that UBER is facing, it can be concluded that their organization is lack in proper selection and hiring of drivers (which serves as their employees). When it comes in the application of drivers in UBER Philippines, the requirements and documents needed are legal and based from Department of Transportation and Communications’ standards (such as Professional Driver’s License and the Official Receipt thereof, a National Bureau of Investigation (NBI) Clearance, and a Philippine National Police (PNP) Clearance). They usually meet this requirements but they lack in the company’s proper hiring of drivers and lack of communications and orientations within the company. UBER Philippines hire employees through the fulfillment of necessary requirements and mere job interviews. They do not select their drivers in extensive and careful manner. They also do not dig deeper in terms of past behaviors and personality of their employees that affects their passengers. One way to address this type of issue is through the aid of veterans. Because they’ve already been trained, tested and trained and tested again for them. They can be of help in having better recruits. By far, the biggest values a veteran adds to any company’s broken culture are restraint and unit cohesion. They’re taught to adopt a philosophy that equally embraces two crucial business priorities: mission accomplishment and troop welfare. Unit cohesion goes

beyond simply being a team player. It is the bonding together of team members and employees in such a way as to sustain their will and commitment to each other, the company, the task at hand, and the overall mission and values of the organization, despite obstacles, adversity and stress. There’s a philosophy out there among many organizations that says, “We can train hard skills, but we hire for attitude and soft skills.” Soft skills being things like positive attitude, strong work ethic, resilience and mental toughness to name a few. The problem with that philosophy is, anyone can have a good attitude when they want to get something from you, like a job for example. It’s easy to put on a show for an interview or series of interviews and relying on personality assessments has hardly solved the problem.

Performance Appraisal

In terms of measuring and evaluating the current performance of drivers in UBER, the frequent monitoring of driver’s performance and behavior externally and internally is an important key in order for UBER to know and decide for the drivers that needs to be retained or fired. It is said that performance appraisal is often ineffective but the fact is that job performed must be assessed.

References:

Technology and Telecommunications practice at Disini & Disini Law Office Dara Kerr, Uber celebrates its fifth birthday with tears, Cnet, Jun. 3, 2015, available at http://www.cnet.com/news/uber-celebrates-its-5th-birthday-on-a-positive-note/. John Partick Pullen, Everything You Need to Know About Uber, TIme, Nov. 4, 2014, available at http://time.com/3556741/uber/.