This essay analyzes the suitable leadership approaches that can be implemented in Amazon to deal with the change taking place in the organization. It focuses on the barriers to change faced by the company and suggests leadership styles that can help overcome these barriers.
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Running head: UNDERSTANDING 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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1UNDERSTANDING AND LEADING CHANGE IN AMAZON Task3:LeadershipApproachestoDealwithChangeinaRange ofOrganisationalContexts Including the Change Required for Amazon Introduction Amazon is facing different change barriers that are resulting in decreased profits of the company. The objective of the essay is to analyse the suitable leadership approaches those can be implemented in Amazon in dealing with change taking place in the organisation focussed on barriers to change faced by the company. Discussion Understanding the Required Change It has been identified that Amazon is one of the leading global online retailers. However, it has been confronted with different issues in relation to its supply chain management. Firstly, the organisation does not ensure smooth flow of communication from the higher levels to the lower levels (Al-Haddad and Kotnour 2015). Hence, the concern is directly associated with the work culture of the organisation. Another issue confronting the organisation is the inappropriate managementbehaviourthatcausedresentmentamongthestaffs.Moreprecisely,the management has set unrealistic goals, which are almost impossible to be accomplished by the staffs. Along with this, the staffs are facing unhealthy competition among them and this issue needs to be addressed with effective care. Finally, the managers lack the desired skills in Amazon in motivating their subordinates. This has minimised the motivational level of the employees working in different departments in
2UNDERSTANDING AND LEADING CHANGE IN AMAZON Amazon (Alvesson and Sveningsson 2015). There has been absence of adequate training and development schemes that have hindered the progress of staff growth within the organisation. As a result, the employees of Amazon have become resistant to change and the organisation would find it difficult to implement effective change management strategies in its supply chain management process for enhancing its business operations (Amazon.com 2019). Analysing Barriers and Resistance to Change It is vital to recognise the barriers faced by Amazon long with its current culture in order to develop a leadership approach that is not contradicting the organisational culture which can cause increased resistance from employees (Antonakis and Day 2017). The identified barriers facedbyAmazonthatneedstobeaddressedthroughsuitableleadershipapproaches implementation are explained below: Amazonhastheorganisationalcultureofruthlessworkingenvironmentwhichis observed to affect the communication flow among the employees regarding change. This acts as a great barrier in successful change implementation and the lack of employee engagement within the company’s decision making process can lead to increasing change barrier in attaining global profit growth (Khan et al. 2018). Another change barrier that is observed in Amazon is inefficient management behaviour that is not supporting change that it is planning to implement in its supply chain management.Thecompanyhasimplementedunreasonablyhighstandardsand expectationalongwithcausingunhealthycompetitionamongtheco-workers (Kollenscher, Popper and Ronen 2018). The company also has the culture of maintaining
3UNDERSTANDING AND LEADING CHANGE IN AMAZON overly forthright leadership that is causing in increased employee criticism to make them formed in working for extra hours without proper compensation structure. Another barrier that is faced by Amazon is that the leadership followed within the organisation is focussed in imposing change on staff without offering them right training or motivating factors to deal with or contribute towards the change taking place in the company(Kontoghiorghes2016).TheworkplacewithinAmazonisdealingwith increasing workplace disputes for not considering the basic safety and skills needs of the workers. The strict targets are forcibly imposed on the employees within any change process and because of which the staff feel that the disciplinary points are unfair. There is the barrier of presence of suitable skills and knowledge those are necessary for the employees to attain in supporting in the change process which can improve its profitability position (Peterlin, Pearse and Dimovski 2015). It is also observed that Amazon is dealing with challenge associated with lack of offering effective training and the support skills that can affect the morale and confidence of employees because of which they resist change. Change Leadership Approaches Leadership that gets results (Daniel Goleman’s Golf Clubs): According to Daniel Goleman, there are six leadership styles and they include coercive, authoritative,affiliative,democratic,pacesettingandcoaching.InthecaseofAmazon, authoritative leadership styles needs to be applied for dealing with the aforementioned barriers andissues.ThisisbecauseAmazondoesnothavesoundcorporatecultureandclear communication and thus, proper leadership style needs to be adopted immediately. Authoritative
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4UNDERSTANDING AND LEADING CHANGE IN AMAZON leadership style would mobilise the staffs working in Amazon towards a common vision(Al- Haddad and Kotnour 2015). The change in Amazon needs a new vision, in which the employees have to be guided clearly. This leadership style is classified as the most strongly positive style in minimising the resistance to change of the staffs. Situational leadership (Hershey and Blanchard): In this leadership style, the leader tells the employees about their roles and the ways of performing such roles. The managers of Amazon could sell their ideas and they have to message the staffs working in their departments to enter into the process. However, the managers have to go back and forth with their subordinates(Al-Haddad and Kotnour 2015). Moreover, the managers rather than providing direction have to allow their subordinates to play a crucial role in generating ideas and undertaking decisions. Therefore, the group members have to undertake majority of the decisions along with undertaking maximum responsibilities for the expected outcomes. Finally, with the help of this leadership style, there would be improvement in the corporate culture of Amazon. Framework for leadership (Fullan): According to this leadership style, there are five themes, which constitute of moral purpose, understanding change, developing relationship, knowledge sharing and creation and coherence making. It is necessary for the managers of Amazon to show determination so that the staffs receive proper guidance and motivation to achieve a particular goal. Thus, resistance has to be reframed in the form of potential favourable force(Al-Haddad and Kotnour 2015). Moreover, the managers of the organisation have to maintain strong relationships with the employees, since such relationship assists in balancing social competence and personal competence. Furthermore,
5UNDERSTANDING AND LEADING CHANGE IN AMAZON the managers are needed to share their experience that would add to the knowledge base of the staffs working in Amazon. Finally, all the staffs working in Amazon have to accept complexities and uncertainties while implementing the change management process. Transformational leadership and transactional leadership: Transformational leadership is a leadership style, which employs punishments and rewards for motivating the staffs. On the other hand, transactional leadership is the leadership style where the managers show charisma as well as enthusiasm for motivating staffs. In case of Amazon, transformational leadership would be more suitable, since the corporate environment is observed to be turbulent (Smollan 2015). This leadership style would assist in changing the existing organisational culture and there would be more than one leader in a single department. As a result, the staffs working in different departments are stimulated by their managers by setting group interest as a priority. Conclusion It was gathered from the essay thatthe concern in Amazon is directly associated with the work culture of the organisation. Another issue confronting the organisation is the inappropriate management behaviour that caused resentment among the staffs.The managers of Amazon could sell their ideas and they have to message the staffs working in their departments to enter into the process. However, the managers have to go back and forth with their subordinates. In case of Amazon, transformational leadership would be more suitable, since the corporate environment is observed to be turbulent.
6UNDERSTANDING AND LEADING CHANGE IN AMAZON References Al-Haddad, S. and Kotnour, T., 2015. Integrating the organizational change literature: a model for successful change.Journal of Organizational Change Management,28(2), pp.234-262. Alvesson, M. and Sveningsson, S., 2015.Changing organizational culture: Cultural change work in progress. Routledge. Amazon.com, Inc. - IR., 2019.Annual reports, proxies and shareholder letters | Amazon.com, Inc. - IR. [online] Available at: https://ir.aboutamazon.com/annual-reports [Accessed 21 Mar. 2019]. Antonakis, J. and Day, D.V. eds., 2017.The nature of leadership. Sage publications. Khan, H.U.R., Ali, M., Olya, H.G., Zulqarnain, M. and Khan, Z.R., 2018. Transformational leadership,corporatesocialresponsibility,organizationalinnovation,andorganizational performance:Symmetricalandasymmetricalanalyticalapproaches.CorporateSocial Responsibility and Environmental Management,25(6), pp.1270-1283. Kollenscher,E.,Popper,M.andRonen,B.,2018.Value-creatingorganizational leadership.Journal of Management & Organization,24(1), pp.19-39. Kontoghiorghes,C.,2016.Linkinghighperformanceorganizationalcultureandtalent management:satisfaction/motivationandorganizationalcommitmentasmediators.The International Journal of Human Resource Management,27(16), pp.1833-1853.
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7UNDERSTANDING AND LEADING CHANGE IN AMAZON Peterlin, J., Pearse, N.J. and Dimovski, V., 2015. Strategic Decision Making For Organizational Sustainability:TheImplicationsOfServantLeadershipAndSustainableLeadership Approaches.Economic & Business Review,17(3). Smollan, R.K., 2015. Causes of stressbefore, during and afterorganizationalchange: a qualitative study.Journal of Organizational Change Management,28(2), pp.301-314.