Organizational Structure

Individual Assignment

Organizational Dynamics

ODY PGP-FABM 2022-24

Instructor: Prof. K.V. Gopakumar

Academic Associate:

Submitted on January 30, 2023

By Kamlesh Kumar Sahu

Section D

FABMC202200305
UBER: Pre-2017 organizational structure
Before adopting the matrix structure, Uber had a flat, decentralized structure with limited
hierarchical layers and a focus on rapid decision-making. This structure allowed the company
to move quickly and respond to changing market conditions. However, as the company grew
and became more complex, it became necessary to implement a more structured and scalable
organizational design. This led to the adoption of the matrix structure, which provides a
balance between speed and efficiency.

Figure 2: Organizational structure of UBER pre-2017

UBER: Post-2017 organizational structure

Uber changed its organizational structure in 2017 to address several challenges it faced as it
grew and matured as a company. Some of the key reasons for the change include:
1. Complexity: As Uber expanded into new markets and product lines, its operations
became increasingly complex, making it difficult to coordinate efforts and allocate
resources effectively.
2. Lack of alignment: With a limited formal structure, different parts of the company
were working in isolation, leading to confusion and lack of alignment.
3. Slow decision-making: With a decentralized structure, decision-making was slow
and lacked clear accountability, making it difficult to respond quickly to changing
market conditions.
4. Need for structure and efficiency: As the company matured, it became necessary to
implement a more structured and efficient organizational design to better allocate
resources and coordinate efforts.

These challenges prompted CEO Dara Khosrowshahi to initiate changes to improve the
company's operations. To address these issues at Uber, Khosrowshahi worked towards
improving the company's organizational culture, which required changes in the organizational
structure. This involved the de-layering of the structure, removing certain levels of
management to increase flexibility and respond to changes in the market.
UBER: 2019 Reorganization
Following the failed IPO in 2019, Khosrowshahi initiated a senior leadership reorganization
to improve efficiency. The chief operating officer (COO) and chief marketing officer (CMO)
roles were eliminated, with responsibilities divided among other executives. The new
structure aimed to create a flatter organization with fewer layers of management, improving
decision-making and communication. Marketing operations were combined with
communications and policy departments to ensure consistent messaging to stakeholders.
These changes were part of Khosrowshahi's overall efforts to turn around the business and
improve Uber's organizational culture.

Figure 3: Organizational structure of UBER in 2019

The organizational structure of Uber is a matrix structure, which combines functional and
product-based team structures. It includes cross-functional teams, with team members from
different departments working together to achieve common goals. The structure includes the
following key components:
1. Business Units: dedicated teams responsible for specific geographic regions or
product lines.
2. Functions: departments responsible for specific business functions such as marketing,
engineering, finance, and operations.
3. Project Teams: cross-functional teams formed to address specific business initiatives
and projects.
4. Centralized Support Teams: teams responsible for providing support and resources
to the business units and functions.
Key Takeaways
1. Companies reconfigure their structures to increase their efficiency, ultimately
maximizing all stakeholders' interest
2. Changes in organizational structure occur in response to market fluctuations
3. Organisational restructuring improves alignment and reduces confusion

(Word count: 492)

References
1. “Uber Organizational Structure - Research-Methodology.” Research-Methodology, 17
July 2021, research-methodology.net/uber-organizational-structure-3.
2. “Uber Strategy Teardown: The Giant Looks to Autonomous Future, Food Delivery,
and Tighter Financial Discipline.” CB Insights Research, 14 Sept. 2017,
www.cbinsights.com/research/report/uber-strategy-teardown-expert-research.