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PGBM70 UNDERSTANDING
ORGANISATIONAL
PERFORMANCE
[Type the document subtitle]
8/11/2019
acer
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PGBM70 UNDERSTANDING ORGANISATIONAL PERFORMANCE 1
Contents
Introduction......................................................................................................................................2
Strategic performance management in Amazon..............................................................................3
Performance measurement at amazon.........................................................................................5
White paper process.................................................................................................................5
Amazon activities and environment................................................................................................7
Feedback culture..........................................................................................................................7
Relationship between decision-making and performance of organization......................................8
Areas for improvement....................................................................................................................8
Conclusion.....................................................................................................................................10
Recommendation...........................................................................................................................10
Implementation plan for recommendation.....................................................................................11
References......................................................................................................................................12
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PGBM70 UNDERSTANDING ORGANISATIONAL PERFORMANCE 2
Introduction
Performance of an organization needs to be analyzed and managed for ensuring the success of a
company. The reason being the company is largely responsible by the human resource
performance and overall organizational performance at the strategic level. The purpose of the
report is to analyses performance management of a company for which the selected company is
Amazon. The key reason for selecting the company is the success story of Amazon, which
reflects that the company has been serving high-performance since years, however there may be
some loopholes in the performance management system implemented by the company for which
Improvement areas will be identified, and key recommendations will be provided to the
company. Various strategic performance management tools will be used as balance scorecard
and key activities and environment that reflects the performance management of Amazon will be
discussed in report further.
Amazon is one of the largest ecommerce company owned and run by Jeff Bezos, who is a
transformational leader that has introduced the world with new technology, online retail
presence, and innovative online products and services across the globe. The reason for selecting
this company for discussion over performance management is amazon has included a separate
performance management elements and approach that are considered unique and could be
critically analyse due to the size of the company, which is very broad and expanded and largely
depended on performance of the company. The company is offering large number of products
and services that seems to be anything, which a customer need. Moreover, the performance of
the company is also crucial as the company is focused towards the customer need and
satisfaction, which would only be enhanced by its employees service providing and performance
of the company as a whole (Amazon, 2018).
The company has initiated the business from an online bookstore, which turns out to be every
consumer goods to be available at the site for delivery, including entertainment goods like
amazon prime music, amazon prime video, fire TV stick and many more. Moreover, it has been
identified that the success of amazon is attributed for fulfilling vision and mission, which is
primarily focused around customers of the company (Abdulraheem Sal, 2016). The mission of
amazon depicts its focus over the lowest possible prices to be offer to the customer, the selection
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PGBM70 UNDERSTANDING ORGANISATIONAL PERFORMANCE 3
of goods at best to its capability, and to provide most convenient shopping experience to the
customers. Through these three concentrated elements, it can be depicted that the focus is
completely towards the customer satisfaction, which could lead the company to ignore taking
care of its employees, their growth and their performance. Thus, the performance management of
amazon will be critically evaluated in the report further, succeeding with the areas for
improvement for amazon regarding performance management. The major stakeholders for the
company include customers, government officials, retailers/ sellers, employees, and shareholders
(forbes, 2019).
Strategic performance management in Amazon
A definition by American management association provide the performance management
insights as a partnership among management of the company and employees which will be
helpful for them to serve to their maximum capability which would align to their personal
objectives and company’s values, goals, and organizational initiatives (Zhang & Tan, 2017).
As defined by Bernard Marr, strategic performance management includes frameworks,
methodologies, and indicators that could be helpful for an enterprise in strategy formulation and
let the employees acknowledge strategic insights that would let them challenging the strategic
assumptions, focus over the strategic thinking, inform decision making in strategy and strategic
learning. Some of the identified tool for analyzing strategy performance management includes
balance scorecard, value based management, management by objective, and result oriented
management (Birasnav, 2014).
The balance scorecard model was developed by Norton and Kaplan that has included to
concentrate over key four perspective that is internal process, customers, financial, and learning
and growth. The model try to provide strategy used to the end and not for the structure or
processed. The focus is majorly on customers and shareholders like employees, which can be
helpful in assessing the performance management of the company. The balance score card of
amazon is presented as bellows
Amazon balance scorecard
Objectives Measures Targets Initiatives
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