This article explores the barriers to change faced by Amazon and how they impact leadership decision-making. It also discusses the difference between initiated and imposed change and the influence of barriers on leadership.
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Running head: UNDERSTADING AND LEADING CHANGE IN AMAZON Understanding and Leading Change in Amazon Name of the University: Name of the Student: Authors Note:
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1UNDERSTADING AND LEADING CHANGE IN AMAZON Executive Summary Amazon is also facing a great barrier in imposing change successfully within the organisation for improving its profit position. The change of introducing Amazon Fresh faced barriers from maintaining its competitive edge against its major rivals because of the quality maintained by its food delivery services. Considering the barriers to change faced by Amazon, the company is observed to implement the imposed change to improve its decreasing profits position along with justifying all its investments.
2UNDERSTADING AND LEADING CHANGE IN AMAZON Table of Contents Task 2...............................................................................................................................................3 Introduction......................................................................................................................................3 Barriers for Change and their Influence on Leadership Decision-Making in Amazon...................3 Part A: Different Barriers to Change...........................................................................................3 Part B: Initiated or Imposed Change...........................................................................................5 Part C: Influence of Barriers on Leadership................................................................................6 Conclusion.......................................................................................................................................7 References........................................................................................................................................8
3UNDERSTADING AND LEADING CHANGE IN AMAZON Task 2 Introduction Change in the organisation is deemed to be the function of a shared vision of future impacting success of the organisation. The report will explain distinct barriers for change along with determining the ways in which these barriers impact the leadership decision making in Amazon. Barriers for Change and their Influence on Leadership Decision-Making in Amazon Part A: Different Barriers to Change There are certain barriers those impacts the major functions of change in Amazon impacting the success of the organisation and they are explained below: Amazonfacesthefreshfoodbarriersagainstitscompetitors-Thechangeof introducing Amazon Fresh faced barriers from maintaining its competitive edge against its major rivals because of the quality maintained by its food delivery services (Anderson 2016). In addition, Amazon faced barrier to change in its poor distribution network and delivery experience along work working hard in the distribution.The organisation’s fresh food offering could not effectively operate than its competitors as its price leadership position posed a great challenge to maintain its quality credentials in its offerings. Lackofeffectivecommunicationstrategy-Amazonhasaruthlessworking environment that disrupts effective communication flow among the employees and the management regarding any new change (Bormann and Rowold 2016). This serves as a
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4UNDERSTADING AND LEADING CHANGE IN AMAZON huge barrier in successful change implementation. Lack of employee engagement in the decision making process in Amazon has resulted in a barrier to implement effective change in attaining international growth through successfully implementing change. Unknown current state-The unknown current state of Amazon’s market situation and employee position within the organisational culture that is affecting implementation of right change at right time (Maheshwari and Vohra 2015). Management behaviour that does not support change-Another issue that is observed in Amazon which can be a major change barrier is the management behaviour of setting unreasonably high standards and expectations along with breeding unhealthy competition among the co-workers. Moreover, another barrier is overly forthright leadership in Amazon resulting in high employee criticism (Bormann and Rowold 2016). Change is imposed on the staff-Another barrier to change in Amazon is imposing change on staff that is observed to make employees feel exploited. In addition, the organisation is dealing with issues such as increased workplace disputes for neglecting thehealthandsafetyoftheworkforce.Stricttargetsareapparentlyimposedon employees in the change process and the employees feel that they are given disciplinary points unfairly (Moore 2019). Absence of suitable skills and knowledge-Amazon is also facing a great barrier in imposing change successfully within the organisation for improving its profit position. The company is facing the barrier of an effective management of knowledge along with developing necessary skills to manage change for decreasing their change resistance. Additionally, it is observed that Amazon is facing challenge related with lack of offering
5UNDERSTADING AND LEADING CHANGE IN AMAZON leadership training along with support skills is affecting increase in the morale and confidence of employees for supporting change (Bormann and Rowold 2016). Failure to priories the business objectives-Another barrier to change initiatives is its challenges face in prioterising the business objectives in comparison to its competitors (Zhao et al. 2016). Due to non-involvement of the employees within the change process, Amazon is not successful to implement people-centred change management within the organisation. Moreover, aligning business objectives with employee goals along with company culture has resulted in making poor product change investments and change in organisational culture. Part B: Initiated or Imposed Change The difference between the initiated and imposed change in relation to the proactive and reactive change is indicated in the table below: Initiated ChangeImposed Change This change is the proposed change that isdecidedto be implementedin an organisationtoattaincompetitive advantages and attaining further growth intheinternationalmarketplace (Hornstein 2015). Initiated change is a proactive change that is initiated by the companies s it is desirable to do so. Thisischangethatisalready implemented in the organisation in its methods,technologies,organisational structure and strategies and is forced to implement in surviving the competitive marketplace or due to drastic concerns faced by the company (Jeong and Shin 2017). Imposed change is reactive change that is implemented within the companies as
6UNDERSTADING AND LEADING CHANGE IN AMAZON it is made necessary by the external forces (Bormann and Rowold 2016) Considering the barriers to change faced by Amazon, the company is observed to implement the imposed change to improve its decreasing profits position along with justifying all its investments (Zhao et al. 2016). The change that is imposed on Amazon is to improve its supply chain management to build reputation through implementing effective strategies and technology. In effectively implementing such change the company will build up necessary skills and knowledge training among employee for boosting their morale in supporting change. This can facilitate the company in attaining rapid growth in competing with intense market pressure. Within the change process of the supply change strategy, Amazon will develop effective delivery strategy along with implementing innovative supply chain management practices (Bormann and Rowold 2016). Part C: Influence of Barriers on Leadership The barriers to change those are faced by Amazon can impact the management along with leadership of the company. For dealing with the barriers to change identified in the company, the management of the company must take initiates to implement the best suitable among the soft management and hard management strategies within the organisation (Giauque 2015). Considering the barriers faced by Amazon in imposing change within the organisation, it isgatheredthatimplementingthehardmanagementstrategyinsuccessfulchange implementation. The hard management strategy to successfully implement change in Amazon will be focused on attaining the long term change objectives through implementing Amazon web services.Hardmanagementhasalsofocussedonmaintaininghardmanagementthrough
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7UNDERSTADING AND LEADING CHANGE IN AMAZON focussing on the consumer satisfaction instead of the competitors (Heckmann, Steger and Dowling 2016). In this strategy Amazon is intended to implement constant changes in the business processes and particularly the supply change process to ensure consumer satisfaction. In implementing this hard management strategy, Amazon will be focussed on making effectivesupplychaindevelopmentplans,settinguprelevantstructuresandmonitoring performance of such implemented change plans. Such hard management strategy will be aggressive and tough and will make sure that all the change activities are focussed on the bottom line (Zhao et al. 2016). Amazon will focus on maintaining hard management based change in its supplychangeprocessthroughbeingfocussedonattainingconsistencyandeffective management of employee skills directed towards attaining organisational change. Such hard management leadership approach implementation can facilitate in decreasing the identified change barriers in Amazon through imposing effective organisational culture for improving employee morale, well developing strategic change management goals along with observing linear increase in performance. Conclusion It was gathered from the report that the unknown current state of Amazon’s market situation and employee position within the organisational culture that is affecting implementation of right change at right time.The change that is imposed on Amazon is to improve its supply chain management to build reputation through implementing effective strategies and technology. In effectively implementing such change the company will build up necessary skills and knowledge training among employee for boosting their morale in supporting change.
8UNDERSTADING AND LEADING CHANGE IN AMAZON References Anderson,D.L.,2016.Organizationdevelopment:Theprocessofleadingorganizational change. Sage Publications. Bormann,K.C.andRowold,J.,2016.Ethicalleadership’spotentialandboundariesin organizational change: A moderated mediation model of employee silence.German Journal of Human Resource Management,30(3-4), pp.225-245. Giauque,D.,2015.Attitudestowardorganizationalchangeamongpublicmiddle managers.Public Personnel Management,44(1), pp.70-98. Heckmann, N., Steger, T. and Dowling, M., 2016. Organizational capacity for change, change experience, and change project performance.Journal of Business Research,69(2), pp.777-784. Hornstein, H.A., 2015. The integration of project management and organizational change management is now a necessity.International Journal of Project Management,33(2), pp.291- 298. Jeong, I. and Shin, S.J., 2017. High-performance work practices and organizational creativity duringorganizationalchange:acollectivelearningperspective.JournalofManagement, p.0149206316685156. Maheshwari, S. and Vohra, V., 2015. Identifying critical HR practices impacting employee perception and commitment during organizational change.Journal of Organizational Change Management,28(5), pp.872-894.
9UNDERSTADING AND LEADING CHANGE IN AMAZON Moore, K., 2019.Amazon’s Annual Report in 2017 (Growth Highlights + Challenges). [online] TheBigCommerceBlog.Availableat:https://www.bigcommerce.com/blog/amazon-annual- report/ [Accessed 21 Mar. 2019]. Zhao, H.H., Seibert, S.E., Taylor, M.S., Lee, C. and Lam, W., 2016. Not even the past: The joint influence of former leader and new leader during leader succession in the midst of organizational change.Journal of Applied Psychology,101(12), p.1730.