Managing Human Capital and Leadership - Amazon

Running Head: Managing Human Capital
Amazon
Managing Human Capital and Leadership

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Table of Contents
Introduction......................................................................................................................................2
Task 1...............................................................................................................................................2
The Fombrun, Tichy and Devanna Model...................................................................................3
The Harvard Model......................................................................................................................3
The Guest Model..........................................................................................................................3
The Warwick Model....................................................................................................................3
Balance Scorecard........................................................................................................................4
360 degree performance evaluation system.................................................................................4
Task 2...............................................................................................................................................4
Organization’s HR functions...........................................................................................................4
Task 3...............................................................................................................................................7
Task 4...............................................................................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
Amazon is a multinational e-commerce corporation based in Seattle, Washington. The company
was founded in 1994 just after the disruptive invention of internet. Jeff Bezos is the founder and
CEO of this behemoth corporation and he once dreamt for selling everything on internet and
with regards to this, organization has expanded its operations in various parts of the globe.
Currently, organization is present in 188 countries across the globe with its 12 registered offices
in different countries. Along with this, organization also provides international shopping at some
places where Amazon is not yet operating. Amazon’s mission statement is “to be the earth’s
most customer centric company”. In relation to this statement, organizational vision is to provide
a platform to its customers where they can come and discover millions of products they might
want to buy online (Amazon Inc, 2018).
Being the customer centric company requires various efforts and effective policies in relation
with the customer satisfaction. Employees play pivotal role in order to convert organizational
mission and vision into reality as they are people who actually deal with the clients, and with
various other external parties on behalf of the organization. With regards to this, this report will
include relevant HRM models for analysing organizational approaches in terms of managing its
human resources. Further, report will discuss organizational HR functions followed by
adaptation of appropriate software in relation with HRM through which maximum benefits could
be extracted for the organizational growth and development. The last part of the report will focus
over analysing the characteristics of an effective leader which are required for the organization in
order to deal with issues and challenges.
Task 1
HRM models are the frameworks which provide an outline to the organizations in terms of
managing its human resources in relevance with the organizational requirements. These
frameworks also help the organizations to deal with different situations along with extracting
positive outcomes. There are numerous HRM models which could be adopted by the
organizations as per their requirements in order to manage its human resources. In this scenario,
Amazon is using Balance Scorecard and 360 degree performance evaluation system for the

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objective of managing their human resources in an effective manner. As Amazon is executing its
functionalities to attain their mission of being the earth’s most customer centric company, thus,
they have adopted all appropriate measures which are required for the purpose of enhancing
employees’ performance. Jeff Bezos believes in work life harmony rather believing in work life
balance because work life harmony is a win-win situation for both employees and employers
(Armstrong & Taylor, 2014).
Jeff Bezos also believes in taking its subordinates up with him and with regards to this, his
expectations from his employees is bit high in comparison to other leaders. Along with this,
organization has adopted following approaches for managing its human resources for the
objective of enhancing organizational performance on regular basis. Every organization perform
its functions with the objective of sustaining for longer in the dynamic and competitive business
environment and in relation to this objective, it is required for the management to adopt change
management and its relevant strategies (Bratton & Gold, 2017).
Following are major four HRM models:
The Fombrun, Tichy and Devanna Model
This model was originated in 1984 and this model is based on four functions which are
interrelated to each other in some manner. These four functions are section, appraisal,
development and rewards. All these functions are crucial components of human resource
management which are helpful in terms of enhancing organizational effectiveness. As this model
is not much effective because it’s all four functions only focuses on improving employees’
performance rather focusing on other factors like environmental, contingency and other external
factors. These factors have huge impact over the organizational functionalities, thus, it is
necessary to consider these factors but as this model is not capable enough to handle all the
situations (Brewster, Chung & Sparrow, 2016).
The Harvard Model
This model is considered as bit comprehensive from other models as it comprises of six critical
components of human resource management which are stakeholders, situational factors,
interests, HRM policy choices, long-term consequences, HR outcomes and feedback loop