Strategic Human Resource Management: A Case Study of Amazon

This report provides a critical analysis of the HRM practices of Amazon, focusing on strategic human resource management (SHRM) and emerging trends in HRM. It discusses the issues faced by Amazon in integrating technology into its HRM practices and the measures adopted to overcome them.

Running head: STRATEGIC HUMAN RESOURCE MANAGEMENT
STRATEGIC HUMAN RESOURCE MANAGEMENT: A CASE STUDY OF
AMAZON
Name of the Student:
Name of the University:
Author’s Note:

1STRATEGIC HUMAN RESOURCE MANAGEMENT
Table of Contents
Introduction...................................................................................................................2
Overview of the business activities of Amazon............................................................3
Strategic Human Resource Management (SHRM)......................................................4
Emerging trends in Human Resource Management (HRM)........................................5
Technology as an emerging trend............................................................................6
HRM issues faced by Amazon.....................................................................................7
HRM practices adopted by Amazon in response to the issues....................................8
Human Resource Planning and Alignment...............................................................9
Job Analysis and Design.........................................................................................10
Recruitment.............................................................................................................11
Retention of employees..........................................................................................12
Performance Management.....................................................................................13
Training and Development......................................................................................14
Employee Engagement...........................................................................................14
Impact of HRM practices on the achievement of Strategic Objectives......................15
Conclusion..................................................................................................................16
References.................................................................................................................17

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Introduction
As opined by Cascio (2015), the field of human resource management (HRM)
is a constantly evolving one and had undergone a significant amount of change over
the last few decades because of the integration of the new emerging trends within its
framework. Noe et al. (2017) are of the viewpoint that the resultant effect of this is
that the HRM teams of the modern-day business enterprises rather than being
relegated to the background of the enterprises are playing an ever-important role
within the enterprises. More importantly, it had been seen that the HRM teams of the
different business enterprises through the effective usage of the process of strategic
human resource management (SHRM) align the individual objectives or the goals of
the employees with that of the goals or the objectives itself (Bailey et al. 2018). This
in turn ensures that the business enterprises are being able to effectively attain the
business objectives that they have formulated for the entire enterprise itself. On the
score of these aspects, it can be said that the HRM teams of the different business
enterprises have become a pivotal part of the enterprises and greatly facilitate the
growth or the development of the concerned enterprises.
Stewart and Brown (2019) argue that the change that had taken place within
the construct of HRM becomes apparent when an analysis of the different job roles
that the HR professionals are performing within the spectrum of the different
business enterprises is being taken into account. In this regard, it needs to be said
that unlike the traditional times when the HRM teams or the HR professionals were
required to perform the job role of recruitment only in the present times it is seen that
they are not only playing an integral role in the effective management of the workers
but also help the business enterprises to achieve their business objectives as well.
The resultant effect of this is that the HR professionals are required to perform a

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plethora of activities like performance management, job design, HRM planning, offer
training, help in the career development of the individuals and others within the
spectrum of the contemporary (Delery and Roumpi 2017). More importantly, the HR
professionals are required to take into account the different emerging trends within
the field of HRM and also the business world for the effective designing of these
practices or activities. The purpose of this report is to undertake a critical analysis of
the HRM practices of the enterprise Amazon.
Overview of the business activities of Amazon
Amazon or Amazon.com, Inc. founded in 1994 by Jeff Bezos and
headquartered in Seattle, Washington, is an American multinational business
enterprise which specialises in offering e-commerce services, cloud computing
services, financial services, artificial intelligence, digital streaming and other similar
services to the customers from all over the world (Amazon.com 2019). In this regard,
it needs to be said that although the concerned enterprise started its journey from a
small room yet presently it is operational in more than 181 different nations of the
world from all over the globe (Cnbc.com 2019). More importantly, it had been seen
that the e-retail or e-commerce services offered by the enterprise under discussion
which offers the opportunity to the customers to buy groceries, books, furniture,
electronic products and others had been greatly appreciated by the customers over
the years (Amazon.com 2019). Furthermore, it is seen that in response to the
success attained by it with regards to its e-retail services, the concerned enterprise
had also launched its digital streaming services which is called by the name of
“Amazon Prime” (Nytimes.com 2019).
The annual revenue generated by the concerned enterprise for the year 2018
was more than US$232.887 billion there making it the largest “internet company of

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the world” in terms of profitability (Amazon.com 2019). As a matter of fact, Amazon
forms a part of the “Big Four” technological enterprise (the largest technology-based
enterprises of the world) which includes Facebook, Apple and Google. More
importantly, the enterprise under discussion here is the second largest employer in
the USA and for the year 2018 it offered employment to more than 647,500
individuals (Amazon.com 2019). In this regard, it needs to be said that the large
workforce that the concerned enterprise boasts of had been hired by the enterprise
so as to help it to achieve its business objective. The business objective of the
enterprise Amazon is “To be Earth's most customer-centric company, where
customers can find and discover anything they might want to buy online, and
endeavours to offer its customers the lowest possible prices” (Amazon.com 2019).
Thus, the employees are required to offer services to the clients or customers to
ensure that they are satisfied which in turn will lead to repeat sales and thereby
enhance the profitability of the enterprise.
Strategic Human Resource Management (SHRM)
Hollenbeck and Jamieson (2015) have articulated the viewpoint that the
construct of SHRM is one of the most important recent trends within the mould of the
modern-day business world and it is seen that the majority of the business
enterprises are trying to take the help of this construct because of the benefits
offered by it. As opined by DeCenzo, Robbins and Verhulst (2016), the construct of
SHRM can be defined as the process through which the business enterprises try to
align their strategic goals or objectives with those of the human resources or human
capital that their enterprise boasts of. On the other hand, Martin et al. (2016) have
noted that the major objectives of the business enterprises behind the usage of the
process of SHRM are to foster innovation, improve the motivation level of the

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employees, enhance their job satisfaction, productivity and others and thereby help
the enterprises to effectively improve their productivity. More importantly, it had been
seen that one of the most important benefits offered by the construct of SHRM is the
fact that it helps the business enterprises to achieve or attain their business
objectives or goals that they have formulated (Brewster 2017). However, at the same
time it needs to be said that the different business enterprises in order to effective
use the concept of SHRM needs to ensure the fact that the HRM team of the
enterprise is working in close conjunction or association with the management team
of the enterprise so as to understand the needs of the human resources, offer them
the right kind of training and thereby help the enterprise to attain its goals or
objectives (Collings, Wood and Szamosi 2018). The resultant effect of this is that the
enterprises taking the help of the process of SHRM are required to understand the
fact that the workers are not just resources rather they are the assets of the
enterprises and for the effective utilisation of this asset they need to undertake
effective planning (Brewster, Mayrhofer and Morley 2016).
Emerging trends in Human Resource Management (HRM)
Sánchez, Marín and Morales (2015) are of the viewpoint that the field of HRM
just like the business world itself had experienced different changes over the years
and even in the present times it is seen that different kinds of new trends are
emerging which as a matter of fact had forced the HR professionals to amend the
HR practices that they had been used to following. As discussed by Brewster, Chung
and Sparrow (2016), some of the most important emerging trends noticed within the
spectrum of the contemporary HRM are the technological changes, extensive usage
of data analytics, focus on the retention of the employees, integration of the concept
of work-life balance, focus on health-care benefits and others. However, at the same

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time a detailed analysis of all these emerging trends reveals the fact that the majority
of them are related to the trend of technological changes. As a matter of fact, it is
seen that the different HR professionals are increasingly taking the help of the recent
developments in the technological field for the purpose of improving the HRM
practices used by them and also help the enterprises to attain their business goals or
the objectives (Meyer and Xin 2018).
Technology as an emerging trend
As discussed by Albrecht et al. (2015), technology is perhaps one of the
single-most important factors which had singlehandedly changed or transformed the
modern world including the business world as well. On the other hand, Morschett,
Schramm-Klein and Zentes (2015) have noted that the impact of technological
developments within the spectrum of the modern-day business world not only
manifests itself within the framework of the commodities or the services offered by
the business enterprises but also when the business models followed by the
enterprises are being taken into account. More importantly, it is seen that the HRM
teams of the different business enterprises are giving up the method of “pen and
paper” or the traditional methods that they have been used to following and
increasingly embracing the technological advancements for the jobs that they
perform (Berman et al. 2019). As a matter of fact, it is seen that the extensive usage
of different technologies had substantially changed the recruitment process,
performance management, training process, career development, job design and
others activities that the HR professionals used to perform taking the help of thee
traditional methods in the earlier times (Kianto, Sáenz and Aramburu 2017). More
importantly, they had facilitated or improved the process of communication between
the management team and the HRM team of the business enterprises and thereby

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helped them to work in a collaborative manner for the effective attainment of the
business goals or the objectives that the enterprises have. In addition to these, it is
seen that the extensive usage of the technological advancements had also reduced
the cost that the business enterprises in the earlier times had to bear for their HRM
related activities and also enhanced the effectiveness or the efficiency of the same
as well. However, at the same time it needs to be said that despite the plethora of
benefits offered by the emerging trend under discussion here it is seen that there are
various issues which the business enterprises face related to the usage of the same
for the management of their human capital or resources (Nankervis et al. 2016).
HRM issues faced by Amazon
As discussed by Lawrence and Chang (2018), an important aspect of the
enterprise Amazon is the fact that although the entire business of the concerned
enterprise is based on technology and technological advancements yet at the same
time it had been seen that until recently the enterprise had been taking the help of
traditional practices for the management of its human resources or capital. More
importantly, in the present times it had been seen that the enterprise under
discussion had integrated the emerging trend of technology within the framework of
the HRM practices or activities followed by it (Marchington 2015). However, this in
turn had given rise to different issues that not only the HRM team of the concerned
enterprise is presently facing but as a matter of fact even the employees or workers
are also facing. Some of the most important issues that the HRM team of the
enterprise Amazon is presently facing on the score of the integration of the emerging
trend under discussion here are listed below-
 One of the most important issues that the enterprise is presently facing
related to the usage of the emerging theme under discussion here is the fact

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that it had developed unreasonably high expectations or for that matter is
trying to achieve a very high standard of results through the usage of the
same (Shrm.org 2019).
 The HRM team of the concerned enterprise is facing various difficulties
regarding the effective usage of the same and this in turn had shifted the
focus of the HRM team from the adequate management of its human
resources or for that matter the achievement of the business goals or the
objectives of the enterprise (Nytimes.com 2019). This in turn is one of the
major reasons for the extremely low-retention rate of the enterprise under
discussion here regarding its employees.
 The HRM team of the enterprise because of its extensive focus on the
technological aspect is failing to offer the right kind of training to the
employees which in turn had declined the quality of the work that they
perform. This in turn had reduced the job satisfaction of the employee and
thereby contributed towards the problem of low-retention of the employees.
 The integration of the emerging trend under discussion here had
substantially enhanced the cost of the management of its human resources
incurred by the enterprise rather than decreasing it as was expected at the
beginning (Cnbc.com 2019). The resultant effect of this is that the enterprise
in order to lower its operations cost had reduced the amount of rewards that
it used to offer to its employees in the earlier times and this in turn had once
again reduced the job satisfaction of the employees of Amazon.
HRM practices adopted by Amazon in response to the issues
The HRM team of Amazon in the present times had formulated different kinds
of measures or practices the purpose of which is to overcome the issues emerging

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from the usage of the emerging trend under discussion here. More importantly, they
are also intended to help the enterprise to achieve its strategic goals or objectives
and thereby add value to the enterprise. Some of the most important measures in
this regard are listed below-
Human Resource Planning and Alignment
Brewster et al. (2016) have articulated the viewpoint that one of the most
important job attributes of the HRM teams of the different business enterprises is to
effectively calculate the number of employees that it would be needing, undertake
recruitment to cater to the human resource needs of the enterprises, calculate the
deficit and make arrangements for the fulfilment of the deficit number. Amazon being
one of the largest technology-based enterprises of the planet and also the
aggressive expansion that it is undertaking requires the help of a large workforce to
effectively manage its workflow (Lawrence and Chang 2018). More importantly,
despite being the second larger employer in the nation of the USA it is seen that the
enterprise is facing a labour crisis which in the longer run threatens to adversely
affect the business prospects or for that matter the profitability earned by the
concerned enterprise. The resultant effect of this is that the HRM team of the
enterprise under discussion here had resorted to the extensive usage of the
technological advancements for the purpose of overcoming this issue and the other
mentioned above so as to add value to the concerned enterprise.
The HRM team of the concerned enterprise regularly conducts meetings with
the management team of the enterprise to effectively understand the number of
employees it needs and on the basis of this recruitment is being done by them
through the usage of the e-recruitment strategy (Botter, Rosa and Lima 2018). In
addition to this, the deficit calculation is also being made through the usage of

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different software to ensure that there are no errors involved in the process and the
results which are being obtained are completely accurate. Furthermore, it is seen
that different kinds of briefing meeting, interactive video sessions and others are also
being organised by the HRM team with the employees so as to make them
understand the kind of strategic goals that the enterprise is trying to achieve, the kind
of actions or performance that the employees need to offer or for that matter is
expected from and others (Nytimes.com 2019). This in turn had enabled the
enterprise under discussion here and also its HRM team to strategically align the
employees with the overall strategic goals or the objectives of the enterprise. More
importantly, through the regular organisation of different kinds of video conference
meetings and others, the HRM team had also been able to effectively link the
different departments or the teams of the concerned enterprise as well.
Job Analysis and Design
Bratton and Gold (2017) are of the viewpoint that the HR professionals are
required to effectively design the job roles that the individuals are required to perform
within the spectrum of a particular enterprise on the basis of the needs or the
strategic objectives of the concerned enterprise. As discussed by Noe et al. (2017),
the performance or the productivity given by the workers greatly depends on the kind
of job roles or the job designs that they are required to perform within the enterprises
and it is precisely here that the job role of job design performed by the HR
professionals gain prominence. In the particular context of the enterprise Amazon, it
is seen that an elaborate process is being followed by the HRM team for the
designing of the job roles of the individuals or for that matter determining the which
job role would be performed by whom. As a matter of fact, it is seen that at the time
of joining the enterprise, the individuals are required to fill in a form wherein they

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mention the different aspects of their character, their personality type, their
qualifications, past experiences and others and on the basis of these data or
information offered by the candidates a quick analysis is being conducted to see in
which department of the enterprise the concerned candidate would be able to fit in or
perform in a better manner (Shrm.org 2019). This in turn ensures that the workers or
the employees of the enterprise are performing the job roles which best suits their
capabilities or aptitude and thereby helps the concerned enterprise to maximise their
performance for the achievement of its strategic objective.
Recruitment
Bailey et al. (2018) have articulated the viewpoint that the process of
recruitment and selection is perhaps one of the most important job roles which is
being performed by the HRM teams of the different enterprises even in the present
times. However, at the same time it needs to be said that the process of recruitment
and selection or the method which is being used by the different HR professionals or
the business enterprises for conducting the same itself had undergone a substantial
amount of transformation in the present times on the score of the extensive usage of
modern technological advancements. In this regard, it needs to be said that e-
recruitment or social media recruitment had become the recent trend and the
resultant effect of this is that the business enterprises and the HR professionals
related to them are resorting to the usage of the same for overcoming the problem of
labour crisis or getting the right number or kind of human resources (Stewart and
Brown 2019). In the particular context of the enterprise Amazon, it is seen that the
HR professionals are taking the help of the process of e-recruitment for the purpose
of overcoming the problem of labour crisis. In this regard, it needs to be said that the
advertisements regarding the job vacancies of the enterprises are not being

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published in the newspapers or other traditional media channels rather the tools like
LinkedIn, Monster.com and others are being used by the HR professionals for
advertising regarding the job vacancies (Nytimes.com 2019). Furthermore, it is seen
for the process of selection online or video interviews are being conducted by the HR
professionals and finally at the last round of the interview they are being asked to
come down to the workplace of the enterprise to have the interview with the
management team of the enterprise (Shrm.org 2019). This in turn had not only
reduced the recruitment cost of the enterprise under discussion here but at the same
time had also reduced the time that the HR professionals used to take in the earlier
times for the completion of the same process.
Retention of employees
Hollenbeck and Jamieson (2015) are of the viewpoint that low-retention of the
employees is one of the most important problems that the different business
enterprises and the HRM teams related to them are presently facing. This can be
explained on the basis of fact that the enterprises invest a substantial amount of
resources for the training and the development of the employees and thus if they
leave the enterprise then not only the resources of the enterprises go to waste but at
the same time the work of the concerned enterprise also gets adversely affected
(Delery and Roumpi 2017). In the particular context of Amazon, it is seen that low-
retention rate is one of the biggest problems related to the management of its human
resources that the concerned enterprise is facing presently (Nytimes.com 2019). In
this regard, it needs to be said that there are various factors like stringent quality
requirements, excessive workload, ineffective rewards and recognition and others
which had reduced the job satisfaction of the employees and this in turn had directly
contributed towards the high employee attrition rate or the low-retention rate of thee

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concerned enterprise (Lawrence and Chang 2018). As per an article of the
Cnbc.com (2019), the management and the HRM team of the enterprise under
discussion here in order to overcome this problem or issue had formulated “a daily
Q&A feedback program” wherein the employees everyday beginning starting to work
are required to offer feedback regarding the issues that they are facing, the
measures that the enterprise can take to improve the enterprise and others. One of
the most important aspects of this program is the fact that this has led to numerous
positive changes within the concerned enterprise which in turn had improved the job
satisfaction level of the majority of the employees of the enterprise. This in turn is
likely to improve the retention rate of the enterprise related to the employees in a
substantial manner.
Performance Management
Botter, Rosa and Lima (2018) have articulated the viewpoint that the
employees are vital from the perspective of the business enterprises because they
are the one who perform the majority of the work of the business enterprises and it is
on their individual productivity that the overall organisational productivity greatly
depends. Thus, it becomes very important for the management team and also the
HRM team of the enterprises to effectively manage the performance of the
employees. In the particular context of the enterprise Amazon, it is seen that the
responsibility of performance management is jointly being shouldered by the
management team and the HRM team of the enterprise. For example, the HR
professionals of the concerned enterprise taking the help of the modern technologies
have designed the job roles of the employees on the basis of their aptitude or
capabilities and this in turn helps them to perform in an effective manner (Shrm.org
2019). On the other hand, it is seen that the management team of the enterprise

14STRATEGIC HUMAN RESOURCE MANAGEMENT
under discussion here offers different kinds of rewards and recognition to the
employees for the purpose of motivating them to perform as per the requirements or
the expectations of the enterprise. In addition to this, attempts have been made to
foster an innovative, creative and continuous learning environment within the
concerned enterprise wherein the employees would be able to maximise their
productivity (Nytimes.com 2019). More importantly, regular reviews of the
performance of the workers are being under and adequate feedbacks are being
given to them for the positive improvement of their performance.
Training and Development
As discussed by Brewster (2017), one of the primary objectives of the training
programs which are being offered by the enterprises to their employees is to
inculcate the kind of skills in them which in turn would help them to perform as per
the expectations of the enterprise and thereby help the enterprise to attain its
strategic or business objectives. In the enterprise Amazon, it is being seen that the
HRM team is taking the help of the digital technologies for the purpose of offering
effective training to the employees. As a matter of fact, different kinds of tools like
digital Power-point presentations, videos, software and others are being used to
acquaint the individuals with the tools that they would be needing for the completion
of their job roles (Shrm.org 2019). In addition to this, it is seen that different
advanced training programs are also being organised by the HRM team of the
enterprise under discussion here so as to further enhance the skill sets of the
employees and also to acquaint them with the recent industry trends and its
developments in a bid to enhance their performance (Nytimes.com 2019). These are
important since they not only help in the effective development of the employees but

15STRATEGIC HUMAN RESOURCE MANAGEMENT
also contribute in a substantial manner towards the growth or the development of the
concerned enterprise as well.
Employee Engagement
The management and the HRM teams of Amazon in a bid to enhance the
engagement among the employees had started the usage of social media within the
workplace. Sánchez, Marín and Morales (2015) are of the viewpoint that the
construct of employee engagement is important since it not only helps the individuals
to get acquainted with their colleagues but also promotes the enhancement of the
skill sets of the employees through these interactions. More importantly, it is seen
that the enterprise Amazon had been able to create a friendly workplace
environment by promoting the engagement among its different employees and this in
turn had led to the improvement of employee performance (Shrm.org 2019).
Furthermore, it is seen that the HR professionals of Amazon in order to promote
employee engagement among the employees frequently organise different kinds of
social or cultural events wherein the employees have the opportunity to interact with
their colleagues and get to know them in an effective manner (Cnbc.com 2019).
Impact of HRM practices on the achievement of Strategic Objectives
An analysis of the above-mentione d HRM practices adopted by the HRM
team of the enterprise under discussion clearly reveal that they had enabled the
enterprise to overcome the issues that it had been facing. More importantly, these
issues have contributed in a significant manner towards the resolution of the issues
that the employees faced for the enhancement of their performance and thereby had
substantially improved the organisational productivity of Amazon. This becomes
apparent when the increase in the annual revenue of the enterprise, its market
share, the percentage increase in its productivity and others are being taken into

16STRATEGIC HUMAN RESOURCE MANAGEMENT
account. As a matter of fact, in the year 2018 it was seen that the enterprise under
discussion here became the 2nd largest enterprise of the world in terms of market
capitalisation and along with PepsiCo received the “2018 Human Resource
Management (HRM) Impact Award” (Shrm.org 2019). Furthermore, the number of
repeat customers of the enterprise had increased in a substantial manner because of
the high-quality services which are being offered to the customers by the employees
of the enterprise. On the score of these aspects, it can be said that the HRM
practices followed by the HRM team of Amazon had greatly contributed towards the
achievement of the strategic objectives formulated by the concerned enterprise.
Conclusion
To conclude, the landscape of the human resource management had
undergone a substantial amount of change in the present times on the score of the
integration of the different emerging themes in the concerned field. The resultant
effect of this is that the HRM teams of the different business enterprises are taking
the help of these emerging themes for the formulation of the kind of HRM practices
which will help them to overcome the issues or the challenges related to the
management of their human resources that they are facing. This in turn had
invigorated a change in the recruitment, training and development, job design,
planning and other job roles performed by the HRM teams. More importantly, the
effective usage of these processes enables the HRM teams to not only effectively
enhance the employee performance but also the overall organisational productivity
as well. This in turn helps the business enterprises to effectively attain or achieve the
strategic goals or objectives that they have formulated for their enterprise. These
aspects of the contemporary HRM becomes apparent from the above analysis of the
HRM practices followed within the enterprise Amazon.

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