Organisational Theory and Practice - Analysis of Amazon's Managerial Style, Organizational Structure, Leadership Style, Power and Conflict Effects, and Motivation Strategies

This report analyzes Amazon's managerial style, organizational structure, leadership style, power and conflict effects, and motivation strategies. It provides recommendations to increase organizational performance.

Organizational theory and
practice

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
(A) Analysing the managerial style of CEO using managerial model........................................3
(B) Examining the steps taken by CEO to brought changes in organizational structure............4
(C) Presenting the leadership style of amazon............................................................................5
(D) Examining the effects of power, influence and conflict at amazon......................................6
(E) Explaining various types of motivation strategies................................................................7
(F) justification and corporate examples in support of the research...........................................8
(G) Suggestions/ recommendations to increase organizational performance.............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Organizational Theory basically puts the substantial emphasis on the people in the
business and how they are treated. It is the study of the organizational design, structures and
relationships. It basically focuses on the dimensions such as formalization, specialization,
complexity, etc. This project is based on the Amazon company which is an American
multinational technology organization which basically focuses on the e-commerce, digital
streaming and artificial intelligence. It is one of the biggest company in the U.S. Industry of
information technology. This report will outline the analysis of the managerial style of the CEO
by using the managerial model. Further it will examine steps taken by the CEO in order to have
changes in the company and culture brought y the CEO of the organization and its influence on
the employees of the company. It will also outline the leadership style in order to enhance
effectiveness and effects of power, influence and conflicts of the company. Furthermore, this
report will outline the various types of motivational strategies and corporate examples and
literature to justify. At last this report will outlie some suggestion s or recommendation in order
to increase organizational performance.
(A) Analysing the managerial style of CEO using managerial model
Chief Executive Officer basically requires good and strong leadership skills in order to
effectively lead and guide the company to meet the organizational mission and goals. Managerial
styles are the set of principles that used to underline the methods, techniques and abilities that are
used by managers to handle the situations and express the leadership in the organization
(Balabanova, Rebrov and Koveshnikov, 2018). The managerial styles are restricted between
autocratic and permissive styles and each style has its own characteristics. Autocratic mangers
used to make the decision without consulting from the shareholders and without communicating
with their decisions whereas the permissive managers used to provide some degree of freedom
in order to do work. The CEO of Amazon company is Jeff Bezos who is the transformational
leader who used to motivate and inspire the team members to achieve more than they have
planned. He makes sure that everyone in the company should work towards the vision of the
organization. The CEO is known as the transformational managerial leader and a task-oriented
leader because its transform the organization and find the different ways to do something

innovative in order to lead across the world. Bezos is the best CEO as it is known for doing the
best planning and giving the best results by doing something innovative and creative.
The managerial model or style used by the CEO of the organization is democratic
management. In the organization democratic leadership is the best managerial style that makes
the to have equality in the organization and work in accordance with the team members. This
makes everyone to participate in the decision-making process rather than having the autocratic
leaders. This is the best managerial style used by the CEO in order to feel the employees
committed to achieve the planned goals and objectives of the business organization (Alruwaili
and Baker, 2021). It makes the organization or workplace featured by having the collaborative
decision-making and problem-solving. The organization must have the good experience in order
to make the good decision and makes the organization to achieve its goals. But sometimes this
managerial style is not good because CEO has to take some quick decisions and the other
members may not able to participate in that decision-making.
(B) Examining the steps taken by CEO to brought changes in organizational structure
An organizational structure is the structure which used to outline the many activities that
helps to achieve the planned goals and objectives of the organization (Xiao, Hafner and
Boettiger, 2021). In the centralized organizational structure the decision-making is done by the
top-level management and in the decentralized organizational structure the decisions are taken
from the different levels of management. The CEO of the cited organization has brought some
changes by following the several steps in the organization which are as described by using the
ADAKR model which are as follows:
Awareness: The CEO of the company must create the awareness in order to find out the
change is required or not in the organization (Moşteanu, 2020). By taking awareness from the
employees that which type of change is required they work on bringing the change. As it is the
IT company it requires automation technology to do work faster.
Desire: The change adopt by the company must be desired by the employees in the
organization. In this leader will find out the advantages and disadvantages of bringing such
change how it will have impact on organizational culture.
Knowledge: The CEO and employees must have the knowledge about using the
technology automation brought by them in the organization. If the changes requires the

employees to be more skilled than the company must provide training to their employees. This
creates the good impact and influence the staff to do their best.
Ability: having knowledge and having ability to used that knowledge is two different
things. The employees of the organization must have the ability to do adopt and work on that
changes in order to lead in the market.
Reinforcement: By adopting the change the CEO must reinforce the and monitor the
change brought by them. This makes them to know that automated machines are making the
company to lead in the market.
(C) Presenting the leadership style of amazon.
Leadership is very important to lead employees of company in right manner so that
certain organizational goals could be achieved. Further, one that is followed by amazon is
transformational style of leadership where particular set of gaols are defined by the leaders of
the company for its employees (Al-Malki and Juan, 2018) However, the leader is constantly
motivating the workers to carry out certain tasks out of comfort zone. Furthermore, one that
could be followed by the CEO of Amazon could be participative leadership style where all the
individuals of the organization work together to make certain decisions. Also, in such style ideas
are shared and informations is presented among all the levels of organization so that better
understanding and decisions could be taken (Çıdık and Phillips, 2021). Thus, by adopting such
leadership style amazon would be able to boost morale of the employees even at the lower levels
of the firm. Further, it would help in retaining the best of the employees at the workplace as
workers would be valued through decisions. Also, if group members are very active in decisions
making process than managers of Amazon would not require much monitoring on the activities
of the firm.
However, it is very important that participative leadership style is followed with certain
rules and regulations so company need not face wrong consequences in the future. Also, it is
known that as this style is lot of time-consuming activity as it involves unnecessary costs when
groups are not able to complete certain tasks on the given deadline (Frick, Bich and Moreno,
2019). Further, there might be circumstances where due to lack of knowledge of certain
individuals ineffective decisions had been taken by the management that might also affect the
revenues and productivity of other people working in the organization. Thus, it can be said that

though transformational leadership is being followed by quoted firm it should keep in mind that
CEO must adopt other styles based on the changing business environment.
(D) Examining the effects of power, influence and conflict at amazon.
Power is very important as it helps in influencing the other people in manner that job
could be performed in more effective manner. Also, certain amount of power is very essential to
carry out the work in more organized manner (Al Issa, 2019). Also, it is known that people
through proper influence are motivated and are able to deliver better productivity at the
workplace. Thus, through right influence people are able to complete complex tasks in most
appropriate manner. Moreover, the concept of power in firm like amazon can be linked to the
legitimate power that believes power comes from the position that is hold by the individual in
organization (Using legitimate power? The responsibility behind your role, 2021). Also, in such
type of power all the duties and tasks assigned by the leader need to be followed completely by
workers without any objections so that company could survive for longer durations.
Furthermore, in context of conflict it can be said for the quoted firm should handle all
types of intra, inter and personal group conflicts through keeping in mind the contemporary
theory of conflict management. Thus, according to this concept all types of conflicts need to be
understood as natural result of change in the organization and thus systematic efforts need to be
put in by leaders so that conflicts could be managed in better ways (Al-Taie and Cater-Steel,
2020). Thus, according to this concept amazon would be able to resolve conflicts in better ways
and manner so that organization tasks are not affected on large scale.
(E) Explaining various types of motivation strategies
The process of providing someone a reason for doing work and achieve goals for
successful life. Motivation is generally influenced by the job satisfaction of employees and needs
of customers that really necessary for sustaining life or important for growth and development
(Al-Hoorie and Szabó eds., 2022). Motivation is the key factor for the successful business,
because every people or employees seeks encouragement so that they can achieve goals and
desired target easily.
Motivation theory is the systematic study of understanding what encourage a person to
work effectively towards a desired goal or organizational targets. For example- When employees
in the company are highly motivated towards their work, then they can easily work hard and do

smart work to meet their goals. It has been noted that motivated person is more energetic and
productive which is beneficial for company's profitability.
Maslow's Hierarchy of Needs
This theory provide information about types of needs a person must meet so that they can
achieve progress.
Physiological- This is the basic need every person want in life so it is important to fulfil
physiological needs such as water, food, shelter and clothes. For example- Amazon is the
company, where an employee's salary allow them to meet physiological needs.
Safety- After physiological need, employee seek for work safety or personal safety in
order to feel protected. In the company, this safety need may align with staff members feeling
safe and feeling a sense of work security. This will ultimately motivate them because of positive
environment at workplace and increase job satisfaction.
Socialization- After safety, every person in the company seek to make relationship so
that they can easily communicate with each other and work as team (binti Mustapa, 2021). For
example- Amazon has successfully created safe and positive environment, where employees cam
work effectively and achieve social life as well. This has created opportunities for employees to
create team building activities.
Self-esteem- staff members in the firm reach this level of motivation by receiving
recognition, which is helpful for them to feel confident about their work and improve self-
esteem. If managers of the company provide positive and true feedback to employee then this
can help them build self-esteem for employees.
Self actualization- In order to reach this motivation level, staff members may seek to
accomplish long term and personal goals.
Adam's equity theory- Nowadays, people are more concern about rewards and
performance in the company, as they want fair feedback, outcomes and opportunities. So,
Adam's equity theory says that employees need to perceive that the reward they achieve for their
efforts and contribution are true or fair enough, and these reward systems provided by company
are fair in comparison to other members. All employees want to be treated equally and fairly so
Amazon managers and HR department, ensures that each and every employee will be motivated
at workplace. By providing them rewards, compensation, bonus, promotion and other benefits as
per their work and efforts the firm has improved its employee engagement.

(F) justification and corporate examples in support of the research
By evaluating the report it has been noted that managerial style is important in achieving
progress and accomplishing objectives. The major role of managers is to make important
decision and make plan to run business smoothly. An effective leader or manager can adjust their
management and leadership style to suit different work environments and employees.
According to (Cross and Carbery, 2022), Amazon CEO Jeff Bezos has successfully
achieved company's goals and objectives with the help of autocratic leadership style. Also, the
management team and manager of the company is focusing on democratic management style to
managers and organize things.
In support to above mentioned statement (Rukh, 2022) has commented that to meet
organizational goals every firm needs to motivate their employees so that they can achieve
desired target easily. For example- If employee are motivated they can communicate effectively
with each other, work as team , resolve conflicts and increase individual performance which is
beneficial for overall productivity.
Employees who lack power become more attuned to other members emotions, especially
when living in the same area or work at similar space. Whereas, powerful leaders or people tend
to pay less attention to the others emotions. A positive power will shape the behaviour, culture,
status and influence with teammates. (Brewington and Darko, 2020).
(G) Suggestions/ recommendations to increase organizational performance
 Every employee need to know about the expectations of company so that they can meet
those goals with the help of personal and professional skills. So managers of the company
needs to communicate on regular basis and use effective leadership style to monitor
individual performance and provide positive and true feedback (Steps to improved
performance, 2020).
 It is suggested to provide suggestion for improvement and take a performance review on
regular basis so that poor performers can work on their weaknesses. For example- if a
staff member does something great, manager need to offer them positive feedback and
rewards so that they will continue grow and give positive outcomes.
 By evaluating the report it is recommended to provide training and development
programs and arrange workshops, conferences and events so that it will fulfil social needs
of employees. Also, it is also suggested to keep track on customer trends in order to

achieve customer satisfaction, employee performance to motivate them with effective
reward system and motivation theories and innovation to attract audience.
 Human resources department plays a vital role in the organizational effectiveness of the
firm. According to Forbes, HR team provide proper guidance to company by helping
with the design of new business strategies so it is necessary to make use of human
resources department.
 In order to improve the efficiency and effectiveness of the firm make sure to use right
technology and tools. For example- A leader of amazon obtains innovative ideas and
technology to help reduce costs, provide quality service to customers, support employees
and improve the overall performance of company.
CONCLUSION
From the above report it can be concluded that organizational practices vary on large
scale depending upon the type and size of business. Further, the report had analysed democratic
managerial style that is adopted by the CEO of amazon to improve the effectiveness of the firm.
Moreover, the study had identified the best organization structure so that high performance could
be achieved by the quoted firm. Furthermore, participative leadership style had been best
suggested for amazon under this report so that better efficiency at the workplace could be
assured. Also, certain effects of power, influence and conflict had also been identified so that
better decisions could be made by the firm in the future. Thus, through identifying these factors
quoted firm would be able to take certain strategic decisions in the future.

REFERENCES
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%20is%20the%20formal,a%20person%20within%20an%20organization.&text=Legitimate
%20power%20is%20based%20on,of%20authority%20within%20an%20organization.>.