How you might advise and help either Uber or Volkswagen

QUESTION

The following case studies have been used to assess incoming Master’s program candidates by New York University’s
(NYU) Industrial /Organizational Psychology MA program. http://as.nyu.edu/content/dam/nyu-
as/psychology/documents/Fiat%20Case%20Study.pdf

The Case Study provides an opportunity for applicants to put Psychology and Science into practice (as expected in the
program). It represents realistic preview of how one might be engaged to drive consultative intervention aimed at
improving conditions for employers and employees alike. This is a business case that asks you to examine one of two
companies (Uber or Volkswagen), from an I/O Psychology vantage point.

Discribe how you might advise and help either Uber or Volkswagen (choose one of
the following case studies). What tradeoffs need to be evaluated? How might individual staff, work teams, and the
overarching organization as a whole be involved to understand what to do now? How could successful change be
measured? What might indicate that the intervention had addressed the most important problems needing to be
addressed? What might a realistic practical business solution involve and entail?

As a burgeoning I/O Psychologist, it is of utmost importance to follow the guidelines set forth by your employer. For this
assignment, I am paying particular attention to your professionalism
1. Imagine that you are creating a video presentation that will be seen by the CEO of VW/Uber. She/he has allotted 7-10
minutes from their busy schedule to hear what you have to say. That’s all you have. Make the best of it.
2. Clear and actionable recommendations that your CEO can easily digest and use for the company.
3. A well-practiced and fluid presentation of ideas. If you seem incompetent, the CEO will not buy in to your message.

Case Study #1: Uber
Background Summary / Business Conditions Rarely does a technological innovation come along to disrupt daily existence
for so many so fast. Ride hailing, and the application behind it, driven by Uber literally created a “revolution” in urban
transportation. Controversial, yet so helpful for consumers, Uber clearly filled a major unmet need – legally or illegally
perhaps. Customers flock to the platform in droves, making it one of the most widely used applications. Meanwhile,
traditional taxi and limo drivers aren’t exactly fans. They often petition to have Uber stopped. Dissent grows. All hasn’t
exactly been smooth sailing at Uber, with concerns raised about demand pricing, driver qualification, safety, insurance,
and most recently just plain bad behavior. Believers shrug this off as critics always decry a good thing when it becomes
top dog. Others, however, have brought forward quite serious allegations of blatant sexual harassment, abusive
management and “aggressive, unrestrained workplace culture.” The troubles at Uber may be endemic of the Silicon Valley
approach though, in highly competitive markets. Even tech giants like Amazon with similar CEOs like Jeff Bezos have come
under scrutiny for tough, demanding work environments. Whether diversity lags at these kind of institutions due to lack
of access, interest, skill sets, or willingness to put up with certain behavior, remains to be clarified. But from the outside
looking in, many claim business climate isn’t good, and staff take the brunt of the trauma in forcing forward revolutionary
gains. This assertive culture of disruption at Uber specifically, however, emboldened some to act outside norms. Going
above and beyond to compete might be one thing, but there are also lines for managers never to cross. Uber took action
after an inquiry led by the Board, and at least 20 employees were let go.
Employee Values / Vision / and Loyalty Adjustment Every business may have disgruntled employees, and former staff
“naysayers.” “Sour grapes” are not unusual. Yet, rumors of reported mistreatment surfaced at Uber in ways nobody
expected. Could it be that “the good old boy’s club” morphed into the brazen start-up environment? As accusations came
forward, execs scoffed. Reports say HR didn’t take action. Perhaps they looked the other way too often, if claims prove
true. Or HR was simply too busy to notice the growing tide and manage down to the details. Suddenly, the CEO was
caught off guard, and had to take “extended” time off. This sent shock waves across investors, customers, and staff alike.
Leadership and Management Reorientation Given the negative publicity, Uber needed to bring in some other voices and
approaches. New leadership and ideology have tentatively been sought to “change the tires while going 90 miles an
hour.” Uber must continue to be relentless to ward off competition, and address growing waves of legislative initiatives by
cities and municipalities limiting access. Changes continue to occur to enhance the Uber service value proposition. The
founder of Uber, and driving force, Travis Kalanick (called TK), is yet another case of a rising star with a compelling vision
and appetite for risk for reward. Lauded by some as a “tech world rock star” TK played the line on ethics in many cases to
get success. His personal bravado lives through his guiding principles for Uber including “always be hustlin’ and super
pumped” as cornerstones of his business philosophy. In order for workers to believe new leadership really has a vested
stake in improvement, staff must see behaviors expected, and connect to the implicit assumptions that it is essential for
both the business and staff to thrive. Yet, TK remains a huge presence and force as the largest shareholder potentially
seeking to return (a.k.a. Steve Jobs). Driverless cars may be on the horizon, but for the foreseeable future drivers are
Uber’s competitive advantage. Those people are not staff technically, but rather contractors. Uber must turn around the
perception that management is self-absorbed and out of touch, drivers will have to feel connection, and high turnover
must dissipate.
Working Conditions and Employee Morale Overall, Uber has so many good things going. Demand continues. Scandal
hasn’t devastated business so far. They aren’t going out of business anytime soon. But competitors like Lyft are gaining
market share. Investors have pulled out. Some customers have even left, boycotting, reporting to friends and family that
they can get around just fine (without variable demand pricing). Potential recruits are wary of working at a firm where
allegations of mistreatment and abuse characterize the day-to-day environment. Many of the “founding few” are still
among the hierarchy. Worries exist that Uber may not be the amazing place to work it once had been heralded. Or at
least the future and draw has become less clear.

You are asked to intervene to assist Uber to figure out what to do, when, and how to rebuild. Devise a strategy and
implementation plan moving forward to resolve the most salient issues, and get Uber back on a growth track. Your plan
should primarily focus around the challenges facing the human capital concerns and consequences.
Recent relevant media references and sources utilized for this case include:
1. Inside Uber’s Aggressive, Unrestrained Workplace Culture. Isaac, Mike. The New York Times. February 22,
2017.
2. Uber Investigating Sexual-Harassment Claims by Ex-Employee. Isaac, Mike. The New York Times. February 19,
2017.
3. Uber Fires 20 Amid Investigation Into Workplace Culture. Isaac, Mike. The New York Times. June 6, 2017.
4. Uber Founder Travis Kalanick Resigns as C.E.O. Isaac, Mike. The New York Times. June 21, 2017.
5. What’s changing in Uber’s New App? Chen, Brian X. The New York Times. June 21, 2017.
6. Uber’s C.E.O. Plays With Fire. Isaac, Mike. The New York Times. April 23, 2017.
You may also want to consider other reference books, magazines, journal articles, or business sources to inform your
thinking about I/O Psychology and the particular issues involved within the Uber case.

Case Study #2 Volkswagen (VW)
Background Summary / Business Conditions For a brief period Volkswagen (VW) reigned as the world’s largest automaker.
With a variety of brands from economy to luxury vehicles, VW gained a reputation for quality and precision. Customers
appreciated that engineering for their cars ranked among the most sophisticated. Unfortunately, what they didn’t know
was that VW had apparently artificially achieved some of those illustrious results in consumer tests through fraud. In
September 2015, Volkswagen was forced to recall millions of vehicles due to “defeat device” cheating software on
emissions tests. Come to be known widely as the self-inflicted “Dieselgate” scandal, VW reluctantly confessed to having
installed software which incorrectly reported lower emissions, to intentionally deceive it would appear. This deceit was
only uncovered due to independent private research in association with university academic faculty and non-profit staff
who had no intent of finding wrongdoing. As a result, many cars cannot be sold now, and some current customers must
be paid. This unfortunate occurrence ensnares the firm in substantial litigation for years to come. Relationships with
buyers and employees alike will be severely damaged. Investigations point to a growing suspicion that rather than a small
circle, this deceit was understood and kept hidden by a substantial number of individuals within the firm. Sales had
already been on the decline in big markets like Brazil and China before this. Yet, the debacle will cause additional huge
losses in revenue and profits now too. Industry executives from outside VW have been brought in to clean up the mess.
For instance, Christine Hohmann-Dennhardt, becomes the first woman, and outsider, to join the VW management board,
now facing difficult choices and substantial derision investigating and fixing this situation. External independent legal
involvement has been solicited to pursue mangers and staff that might have known, but remained silent. Members of the
Board claim, however, that they only found out through reports in the media, well after settlement had begun with the
authorities. This might indicate faulty firm governance, weak flow of information, and unwillingness in the culture to share
difficult truths with those above in senior levels who should have been involved in decision making regarding such
choices. Public sentiment tends to turn from “draw” to “avoid” quickly in these situations, impacting jobs, roles, staff
attitudes, customer and employee satisfaction. Engagement and commitment tend to drop in product scandals. Major
changes at the top will also tend to potentially destabilize working conditions. An opportunity to revamp, perhaps, but
also public legal acknowledgment of blame, and conspiracy, which may reflect on employee pride in working for the
company. Volkswagen will need to move quickly and assertively to regroup and recall, fixing their errors, rebuilding
employee and customer trust. It won’t be easy. Competitors taking advantage and increasing pricing pressures may lure
away concerned drivers. It will be difficult for Volkswagen to avoid significantly decreasing sales and much lower demand.
Employee Values / Vision / and Loyalty Adjustment Volkswagen had a long and significant association with producing high
quality vehicles. Intentional wrong doing, however, has highlighted that leading test results were ill gained. It may tarnish
the impression of better made autos, and certainly VW brands. Customers have been led (or misled) to purchase to attain
the highest standards in corporate social responsibility. Buyers proud of their contribution will not be sure now. VW will
certainly not have the same draw with staff, customers, and applicants alike. Job cuts, delayed promotions, reduced
training, and increased oversight may all take their toll, potentially causing increased dissatisfaction and perhaps more
turnover. Staff may no longer trust and follow management directive without questioning. Press disrespect and pressure
for further investigation and accountability don’t help. Pride in company with family and friends may be harder to sell. In
knowing they couldn’t meet strict emissions targets, managers colluded to “fake results” suggesting focus on profit, far
from the intent of an ethical and safe strategy, or staff well-being. Whether there was true widespread intentional deceit,
or simply perception now of such, this rapid shift will evoke changes in the work culture and work processes. Employees
may need to be re-convinced. Recruits from the outside certainly will encounter negative publicity suggesting concern or
caution. Public display of shame and contempt towards VW will certainly chip away at work environment and staff
engagement. Internal HR programs will be forced adapt. One might presume this will require longer hours, more difficult
encounters, and less success for efforts put forth. Apologies are an important step, but certainly only the beginning for
rebuilding trust. Initially denying allegations, and suddenly reversing under pressure to acknowledge hasn’t helped
Volkswagen in the eyes of staff, customers, or shareholders.
Leadership and Management Reorientation The manufacturing process may need to be revamped to attain real emissions
targets. Or diesel product lines may have to be dropped or altered to hybrid energy strategies. While competitors such as
Toyota Prius gain market share, VW must retool. Production process steps, checks, and evaluation mechanisms must be

strengthened. Heightened awareness and action is critical in each and every manufacturing plant. Management must
ensure that this deceit to circumvent real results never happens again. Under increased scrutiny from regulators and
customers, VW will need to reorient executives toward addressing the public perceptions and the misdeeds. Increased
regulator checks will add burden on staffing and headcount to ensure compliance. All managers at Volkswagen will need
to be brought into repairing reputation. New reporting mechanisms, internal procedures, and tactical protocols will have
to be invented and adopted system-wide to ensure successful outcomes across the firm. It will be critical that senior
executives avoid a culture of blame, but instill a culture of solutions and improvements. Under pressure to raise revenues
and cut costs, new social norms and performance expectations must take hold. Additional meetings, review sessions, and
burden will sit squarely on leader shoulders. Layoffs and unintentional turnover may result. So conditions for leaders will
become much more difficult. Managers at VW will have to do better and different job in turnaround. It will certainly be
harder, and they will be under pressure to work quickly and constantly to revamp.
Working Conditions and Employee Morale Software Engineers, Programmers, Production Technicians, and safety testing
personnel will all come under increased scrutiny and pressure. Regular checks will be made as part of the settlements to
lower actual emissions and raise accuracy in reporting testing results. This can create cultural impact and staff reaction
to second guessing, accusations, and denigration from customers and regulators. Pressure on leaders will be driven down
to staff. Solutions are needed urgently. Staff may need new or different skills. Alternative creative approaches will be
needed. Employees must reduce vehicle emissions to regulated levels. Advancement, and incentives, will decrease at
least temporarily. Volkswagen may struggle to retain sales, let alone demonstrate growth. Staff burden will rise to
increase sales, discounts, and reduce product errors, to recoup revenues where funds are lost.
Overall, VW has a tough road ahead. They need intervention, assistance, and guidance to re-emerge as a leading
organization with a growth profile. You will be asked to intervene to assist VW and the employees to figure out what to
do, when, and how.
Recent relevant media references:
1. In U.S., VW Was Aware of ‘Possible’ Problem. Ivory, Danielle; Ewing, Jack. October 8, 2015. The New York
Times. Section B. Page 1.
2. VW Loses Its Sales Crown, Even Before Diesel Scandal Bites. Ewing, Jack; Bowley, Graham. October 27, 2015.
The New York Times. Section B. Page 2.
3. VW Investigation Focus to Include Managers Who Turned a Blind Eye. Ewing, Jack. October 26, 2015. The
New York Times. Section B. Page 3.
4. 3 Directors Say VW Hid Deceit From the Board. Ewing, Jack; Mouawad, Jad. October 24, 2015. Section A. Page
1.
5. Former VW Chief to Vacate Top Post at Holding Company. Ewing, Jack. The New York Times. October 18,
2015. Section A. Page 10.
6. Our Cars Need More Technology. Manjoo, Farhad. The New York Times. October 1, 2015. The New York
Times. Section B. Page 1.
You may also want to consider other reference books, magazines, journal articles, or business sources to inform your
thinking about I/O Psychology and the particular issues involved within the VW case.

Rubric Exemplary Proficient Satisfactory Basic Unsatisfactory
Introduction: Introduces the topic in an interesting manner; Thesis statement/Purpose;
Transition into body 5 4 3 2 0
Body: Clear and well supported main points, with fluid transitions 5 4 3 2 0
Conclusion: Signaled end of speech; Summarized most important content; Provided
definitive final statement 5 4 3 2 0
Overall Organization: Presents information in a clear and concise manner; Summarizes
key points 5 4 3 2 0
Content Area: Devised a strategy and implementation plan moving forward to resolve
the most salient issues. Plan focuses around the challenges facing the human capital
concerns and consequences 20 18 16 14 0
Verbal Delivery: Proper usage of voice rate, expressiveness/ pitch, intensity/volume
and conversational tone 20 18 16 14 0
Nonverbal Messages: Proper nonverbal messages including eye contact, use of note
cards, posture, physical appearance, facial expressions and gestures 20 18 16 14 0
Technological Component: Professional in design, no distractions by way of font,
graphics or special effects, fluid and well-integrated with spoken word; between exactly
7 and 10 minutes 20 18 16 14 0