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Amazon Organizational Management

Introduction

The company Amazon will serve as the focus of this particular discussion. As the company’s founder and current CEO, Jeff Bezos is most directly responsible for Amazon’s rise up the Fortune 500 list. The company has changed and redefined how enterprises in the e-commerce industry worldwide should approach their core business strategies as a direct result of its successful shift from offline to online operations. The organization has achieved high success in controlling employee behavior on both the macro and the micro levels. It has formed connections with regional networks and suppliers to maintain its high standards consistently.

PART1: INDIVIDUAL PROCESS BEHAVIOR.

Personality, Perceptions, and Attributions;

According to Hahn et al. (2018), Amazon’s phenomenal expansion is both indicative of and consistent with the norms of the current business world and the digital revolution. The company’s Chief Executive Officer and founder, Jeff Bezos, adheres to a work philosophy that stresses the importance of employees possessing qualities such as a visionary approach, hard work and quality. Factors like as the company’s massive staffing network, which guarantees the timely supply of high-quality products, characterize the company’s work culture.

Learning and Performance Management;

This is not something that can be done just by having things listed on Amazon; rather, the company takes a data-driven strategy, which allows for an accurate study of both staff and customer behavior. Amazon is likely in the top tier of businesses that monitors market developments across several dimensions to gauge employee performance. One further thing that sets Amazon apart is the unique business climate it has cultivated over the past two decades. The company takes a more liberal approach to doing business, creating and promoting nearly all of its products online rather than in physical stores (Lunenburg 2012). The company’s code of conduct is based on the belief that the best way to serve customers is to advocate for items that are both superior and underrepresented in the market. If we want to understand customer behavior, then we need to look at the hard data. Amazon has an impressive process for analyzing customer behavior.

Motivation at Work;

Amazon workers have access to a vast array of learning and promotion opportunities within the company. The way in which the firm handles its deliveries and other aspects of logistics are deeply ingrained in the organization’s culture. In point of fact, the company does not produce anything; rather, it makes cash by persuading huge firms from all over the world to sell their commodities through the online marketplace that is operated by the company (Hahn et al. 2018). It offers a thorough framework for employees to comprehend the ethos of the organization while they are on the job. Incorporating concepts of leadership, the company provides its employees with the chance to evaluate where they stand within the organization and consider ways in which they may enhance their professional and personal appearance.

Stress and Well-Being at Work;

This plan’s design takes into account the employee’s mental and emotional health, as well as their physical health. The program, we discovered, was intended to incorporate data on employee overuse injuries and accidents into policymaking. As has been widely reported, Amazon has a serious problem with suicidal thoughts among its employees (Lunenburg 2012). Given the current state of employee mental health, Amazon applauds their efforts to foster a mindful and stress-reduction environment. Amazon also provided evidence that it had polled employees about its upcoming wellness app, which would make the company’s health and wellness programs available to all employees, regardless of location or role within the company. Amazon conducted a thorough investigation and discovered no evidence that this program was linked to incentive or benefit premiums. Employees should have access to wellness programs as a perk. Employees should not be disciplined for failing to meet the company’s wellness goals or for failing to participate in wellness activities. To summarize, it appears that they used large amounts of data to carry out widespread treatments without linking them to benefits in order to interfere with health outcomes.

PART 2: INTERPERSONAL PROCESSES AND BEHAVIOR.

Communication;

As a means of fostering better communication inside the company, Amazon actively encourages its staff to submit feedback on a regular basis. Employees are encouraged to speak up to management about any concerns they may have or ideas they may have to help make the company even better. Hourly employees have a voice in company decisions when they are invited to participate in regular roundtable discussions called “Associate Roundtables,” where they can discuss any issue they’re encountering on the job, offer suggestions for improving processes, or ask questions of management (Solanki, 2019). The number of Amazon Associate Forums across Europe and Africa is in the dozens. Regular meetings are held between the site’s leadership and representatives elected by the staff to facilitate the free exchange of ideas, suggestions, and criticisms. Working methods, shift patterns, and employee well-being may all have a direct impact on the site’s environment, therefore it’s helpful when employees and managers are able to speak with one another directly about these issues.

Work Teams and Groups;

Jeff Bezos, Amazon’s founder and CEO, is well-known for many reasons, and the company’s enormous success is only one of them. Many other leaders have pointed to his fundamental approach to cooperation and leadership as an inspiration. Bezos encourages maintaining a laser-like concentration on the future. This needs calm perseverance, flexible strategy, and the bravery to go against the grain. The founder bases decisions on “The Two Pizza Rule.” When deciding on a group size for a project, it shouldn’t be bigger than what two pizzas can provide for. The efficacy of a team decreases significantly once the number of members increases above seven or so (Goel et al. 2020).

Decision Making by Individuals and Groups;

As a multi-layered process that affects individuals, teams, and the whole business, decision-making is crucial to the success of any enterprise. The straightforward message is what Bezos is after, therefore he uses a red pen to erase everything that doesn’t fit. When it comes to convenience, price, and customer service, Amazon is unparalleled. Brainstorming, affinity diagramming, force-field analysis, flowcharting, planning matrices, unilateral decision-making, consultative decision-making, voting decision-making, and consensus decision-making are all part of Amazon’s decision-making process. In terms of data and precision, Amazon has a stellar reputation (Goel et al. 2020). One of his famous quotes is, “You have to realize: decision making isn’t one size fits all.”

Power and Political Behavior;

Bezos’ principal sources of influence are his income and lawful power. Without a doubt, Jeff Bezos has successfully exploited his leadership power, which is why he was named one of the top 20 CEOs of 2020. In 2013, he acquired the Washington Post to support Amazon Kindle’s Project Rainbow. He shuffled journalists, combined advertising sales with new projects, and completely restructured the workplace. This relates to how he created a method to prevent the collapse of the journalism profession while still enjoying large financial advantages for his work. Bezos also used his power and fortune to promote his vision of a better world. He aims to launch his first New Glenn rocket in 2020 and send the first human into space by the end of 2018. He has been in the space sector for 15 years. Blue Origin is his space company. The capacity to reward staff is critical as a business leader. It is critical because it allows businesses to establish relationships among their employees. Bezos opted to give his 100,000 full-time employees shares in addition to their normal compensation because he wanted them to feel like owners, and he explained why in the company’s first annual letter. This strategy not only piques employees’ interest, but also stimulates their entrepreneurial spirit, which propels them to success.

Leadership and Followership;

Leadership styles affect an organization’s performance. Amazon executives may pick transactional or transformative strategies. Transactional leaders’ authority comes from social interactions like monetary rewards or punishments for laziness. Transformational leaders, on the other hand, help their employees succeed while also improving themselves. Jeff Bezos created AWS Grow Our Own Talent, Surge2IT, and UXDR Apprenticeship Programs. These initiatives increase staff engagement and performance. Thus, transactional leadership becomes transformative (Solanki, 2019). Transactional leaders, followers, and followers’ peers focus on their interactions. The leader communicates what is expected of subordinates and the rewards they will get if those expectations are met. Coaching elevates transformational leaders’ duties (Goel et al. 2020). Transformational leaders “teach, mentor, and provide both challenge and support” to inspire employees to exceed organizational goals. Transformational leadership is crucial for e-commerce firms since followers’ objectives constitute their basis.

Conflict and Negotiation;

As Amazon’s CEO and founder, Jeff Bezos, demonstrates, it’s a genuine difference of opinion, a candid expression of my viewpoint, a chance for the team to analyze my viewpoint, and a rapid, serious determination to go their way. According to Solanki, (2019), Bezos asserts that he encourages Amazon’s leaders and employees to “disagree and commit” as a means to politely disagree and try out new ideas, enabling for speedy decision making in Amazon’s inventive culture. People are more willing to take risks and devote themselves entirely to the achievement of a project when they are asked to “disagree and commit.” Disruption and sabotage are not permitted, nor are those waiting in the wings to shout.

PART 3: ORGANIZATIONAL PROCESSES AND STRUCTURE.

Jobs and Design of work;

Amazon’s Design Team is Fueled by Top-Notch Creatives. They hail from a wide variety of design specializations, including product, brand, industrial, visual, motion, education, voice, and experience. Amazon has scientists, engineers, designers, programmers, editors, authors, animators, architects, photographers, producers, and managers. According to Umar (2022), Instead of focusing on competitors, Amazon prioritizes its customers, and all of its teams and companies are led by four core principles: a dedication to innovation, a focus on operational excellence, a focus on the long term, and an obsession with customers. The thrill of creating technology, innovating products, and delivering services that improve our customers’ lives and companies is what keeps us going.

Organizational Culture;

Amazon’s organizational culture has been described as breakneck-paced and notoriously cost-conscious, as befits a firm that has run only a minor profit, or a deficit, under commonly recognized accounting techniques for the most of its life as a public company (Althafairi et al. 2019). Amazon’s founder and CEO, Jeff Bezos, has frequently emphasized the need of continuous examination and adaption of the company’s culture to guarantee that Amazon never loses its nimbleness, flexibility, and willingness to try new ideas. The Group bills itself as “one of the world’s most customer-centric organizations.” Despite its huge scale, Amazon, which employs over 1.3 million people in over 280 countries and territories, seeks to operate with the “startup attitude” of a smaller business by taking chances, exploring new ideas, being adaptive to market changes, and being “hungry” for success (Althafairi et al. 2019).

Career Management;

When it comes to education and professional development, Amazon thinks everyone should have equal access. To achieve their goal of becoming the best employer on Earth, Amazon has allocated $1.2 billion to provide their staff with opportunities to increase their skillsets through free training, tuition assistance, certifications, and other means (Umar 2022).

Managing Change;

Amazon uses “contingency” to adapt to shifting situations. As a result, the assumption that there is a single, ideal approach for making this shift has been discarded. Many present and future events will affect action. Amazon uses robots to change business processes. This modification depends on several things. Corporation establishment and operation are crucial. Also discussed are worker direction and occupation structure. Internal and external company settings are other considerations. Technical development matters too. Amazon relies on technology to match consumer expectations with robots (Umar 2022). This change is also influenced by organization size. Larger companies can afford and implement change easier. A contingency plan is necessary and timely since no two businesses will face the same event or mix of circumstances. The change-making process must consider each business’s characteristics and the changing environment to be effective. Contingency theory advocates open organizations. Conditions determine a company’s internal operations’ efficacy. Amazon considered technology, employee flexibility, the move’s significance, and its potential advantages (Althafairi et al. 2019). Amazon expects robot technology to boost sales and profitability. The robotic warehouse will handle vast stock. Thus, adapting will be easier. First and foremost, the CoV-19 epidemic raises future risks. The robot warehouse will help adjust to market demand and client behavior.

In summary, how employees, processes, and other Amazon resources interact is defined by the company’s organizational structure. Managers’ strategies for guiding day-to-day tasks in fields like IT development and marketing, for instance, are shaped by the organization’s structure. There is a system in place to help the firm manage its subsidiaries and reach new customers as it grows. In addition, the company’s organizational structure is constantly changing to accommodate the business’s expanding range of offerings. The organizational framework of the company is built around a corporate structure that is compatible with the technological underpinnings of providing services online. The corporate structure of a corporation is a key component in determining how well it can weather the consequences of competition because of a requisite complementary condition.

References

Althafairi, B., Alhoumaida, N., Saxena, M., & Almsri, Z. (2019). Case study-AMAZON. Journal of the Community Development in Asia (JCDA)2(2). https://www.ejournal.aibpm.org/index.php/JCDA/article/view/517

Goel, P., Verma, P., Al Mutairi, Q., Bhardwaj, R., & Tyagi, S. (2020). Customer Experiences, Expectations and Satisfaction Level Towards Services Provided by Amazon. International Journal of Tourism and hospitality in Asia Pasific (IJTHAP)3(1), 89-101. https://ejournal.aibpm.org/index.php/IJTHAP/article/view/727

Hahn, Y., Kim, D., & Youn, M. K. (2018). A brief analysis of Amazon and distribution strategy. Journal of Distribution Science16(4), 17-20. https://koreascience.kr/article/JAKO201816357065337.page

Lunenburg, F. C. (2012). Power and leadership: An influence process. International journal of management, business, and administration15(1), 1-9. https://maas.vn/wp-content/uploads/2019/11/Lunenburg-Fred-C-Power-and-Leadership-An-Influence-Process-IJMBA-V15-N1-2012.pdf

Solanki, K. (2019). ‘To what extent does Amazon. com, Inc’s success be accredited to its organizational culture and ND Jeff Bezos’s leadership style?. Archives of Business Research7(11), 21-40. https://pdfs.semanticscholar.org/7776/412a7bf591b2fef98db84f7271c7ad327b6b.pdf

Umar, A. (2022). Evaluation of management effectiveness in the organization (On the basis of Amazon Inc.) (Doctoral dissertation, Private Higher Educational Establishment-Institute “Ukrainian-American Concordia University”). https://elib.uacu.edu.ua/xmlui/handle/123456789/36

 

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