Human Resource Management Practices at Amazon: A Comprehensive Report

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HUMAN RESOURCE MANAGEMENT
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INTRODUCTION
As a HR manager of Amazon, this report will address human resource purpose and functions
which can be applicable for resourcing and workforce planning. This report will focus on the
process of recruitment and selection within the Amazon. This will provide the benefit of the
practices of HRM within Amazon for raising its productivity and profit. This report will
analyze the importance of the relation of employees with respect to show their influence on
the decision-making of Amazon. This will also identify the main employment legislation
elements and their impact on HRM decision-making. This report will highlight the
application of HRM practices by giving examples.
OVERVIEW OF THE COMPANY
Amazon is an American technology company which was formed by Jeff Bezos on 5th July
1994 which is headquarters in Washington, Seattle, Arlington and United States. The
company serves its products worldwide like Amazon Echo, Amazon Fire TV, Amazon Fire OS,
Amazon Kindle and Amazon Fire and services like Amazon.com, Amazon Music and Amazon
Alexa etc. The company has approx. 647,500 employees and the revenue generated by the
company in the year 2018 was US$232.887 billion.
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P1 & M1 PURPOSE AND FUNCTIONS OF HUMAN RESOURCE MANAGEMENT
FOR FULFILLING BUSINESS OBJECTIVES OF AMAZON
According to Cascio (2015), HRM is a strategic method for effective management of
employees of the company and organization so that they can help the company in gaining
the competitive advantage and profit as well. Human resource management plays a vital
role in the company Amazon by hiring the best employee for vacant places in order to
generate profit (Cascio, 2015).
Workforce planning: the HR manager of the company observes and identifies the vacancies
of the employees and recruits the new candidates for the company and make sure that they
perform their job effectively.
Purpose and functions of HRM:
1. Staffing: their main purpose is to select and hire the proficient employees for the
benefit of the company where they help the company Amazon by generating new
and effective ideas for the benefit of the company in order to make a profit (Lussier
and Hendon, 2015).
2. Training and development: this is the function of human resource manager to
provide proper training and development to the newly hired employees for
improving their knowledge and learning with having the aim of achieving the
organizational objectives (Cohen, 2017).
3. Professional growth: the HR manager of Amazon focuses on the effective growth of
the employee professionally as well as personally. They perform their functions
effectively for providing benefit to the employees for their betterment and growth of
the company as well (Shields et al., 2015).
4. Performance evaluation: the manager aims to obtain the objective of the company
so they observe and select the best and proficient employee for rewarding them
which results in motivation and best future results in obtaining better results (Shields
et al., 2015).
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5. Advisory functions: the HR manager also performs advisory functions with the top
level management for formulating the policies and measures. This is also helpful for
maintaining the employee's relations in order to enhance morale and work
effectiveness (Lussier and Hendon, 2015).
6. Managerial functions: the HR manager’s purpose is to plan the policies, measures
and objectives of Amazon by designing and developing the organizational structure
and culture effectively. Their purpose is to inspire and directs the employees
according to planned activities (Lussier and Hendon, 2015).
Functions for achieving objectives:
The above purposes and functions of HRM help Amazon in obtaining the desired results and
objectives. The main objective of the company is to provide satisfaction to its customers by
providing efficient services to them and increase their productivity. The HR manager hires
the best employee for carrying out the activities of the business in a proficient way (Lussier
and Hendon, 2015).
Roles and responsibilities:
1. Their role is to select and hires the best employee for Amazon
2. To manage the management functions and operational resources
3. To design and develop the policies and procedures for Amazon (Brewster, 2017)
4. To motivate and inspire the existing and new employees for achieving the objectives
5. To provide effective training for improving the skills and learning of the employees
Scope of HRM at Amazon:
1. It helps in the planning process for Amazon
2. The HR manager designs job and offers placement
3. They motivate employees for hard work (Brewster, 2017)
4. They provide health and safety benefit to the employees (Brewster, 2017)
5. They maintain the relationship between employee and employer
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P2 & M2 STRENGTHS AND WEAKNESSES APPROACHES OF RECRUITMENT
AND SELECTION FOR AMAZON
Section process: this is a process of selecting a more capable and appropriate employee for
Amazon. This process involves the rejection of the unsuitable applicant. Approaches of
selection are recruitment, applications, written test, group discussion, technical round,
interview, reference check, medical examination and final selection (Gatewood et al., 2015).
Recruitment process: this is an action of creating contact between the applicants and the
employers. This process encourages many applicants for the job. There are 2 types of
approaches to recruitment i.e. internal and external. The impact of internal and external
recruitment on Amazon will be stated below by showing their strengths and weaknesses
(Farndale et al., 2018).
 Internal recruitment: this process includes employing employees from inside the
company (Holm and Haahr, 2018).
Strengths Weaknesses
1. Quicker and cheaper to recruit
2. Employees are familiar to business
3. Company known weaknesses and
strengths of employees (Farndale et
al., 2018)
1. Existing employees with the same
ideas (Farndale et al., 2018)
2. Creates vacancies to be get filled
3. Limits the number of potential
candidates
Example: this helps Amazon in promoting
the existing employees.
Example: this impact on employees and
employee relation at Amazon.
 External recruitment: this process includes employing employees from outside the
company (Holm and Haahr, 2018).
Strengths Weaknesses
1. From outside it brings new ideas
2. A pool of candidates which become
easy to find the best candidate
1. It takes time (Holm and Haahr, 2018)
2. It is expensive as it includes interviews
and advertisements
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3. Candidates have wider experiences 3. It cannot reveal the real identity
Example: this helps in enhancing
productivity and profit
Example: it effects on productivity and
employee’s morale (Farndale et al., 2018)
EVALUATION OF STRENGTHS AND WEAKNESSES:
The selection and recruitment process gets adopted by the manager of Amazon where the
best process for the company is the selection as it involves a rejection of unsuitable
applicant and before that recruitment, applications, written test, group discussion, technical
round, interview, reference check, medical examination and final selection (Holm and
Haahr, 2018). On the other hand, it is also called as the negative approach as it is an
expensive and complicated process (Gatewood et al., 2015). By emphasizing on the internal
and external recruitment strengths and weaknesses, it gets noted that the company have
needed to improve its business for which it acquires new candidates with having new ideas
for enhancing the business and profit. So, Amazon has to adopt external recruitment for
better achievement of goals and profit (Farndale et al., 2018).
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P3 BENEFITS OF HRM PRACTICES WITHIN AMAZON FOR EMPLOYER AND
EMPLOYEE
APPROACHES OF HRM PRACTICES IN AMAZON:
1. Workforce planning: it is one of the approaches of HRM practices where the HR
manager of the company observes and identifies the vacancies of the employees and
recruits the new candidates for the company and make sure that they perform their
job effectively. This is a significant approach for Amazon as it also includes the
decision-making of the HRM to increase productivity and profit (Brewster, 2017).
2. Selection and recruitment: this practice involves the selection of more capable and
appropriate employee for Amazon for working effectively in order to attain business
objectives as well as for creating contact between the newly hired employee and
employers (Brewster, 2017).
3. Training and development: this HRM practice involves giving proper training and
development to the newly hired employees for improving their knowledge and
learning with having the aim of achieving the organizational objectives (Cohen,
2017).
4. Reward system: the HR manager of Amazon uses this practice for attracting and
motivating the employees towards their workings by providing them rewards on
their best performance and activities for achieving the business objectives (Shields et
al., 2015).
5. Performance appraisal: this is one of the effective and efficient practices of HRM
where the HR manager of Amazon observes and selects the best and proficient
employee for rewarding them which results in motivation and best future results in
obtaining business objectives (Shields et al., 2015).
BENEFITS OF HRM PRACTICES IN AMAZON:
The HRM practices provide many benefits to the company's employer and employees which
impacts positively on their relationship where they can work effectively and effortlessly to
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increase the profit of the company as well as customer satisfaction towards products and
services of Amazon (Lussier and Hendon, 2015).
The benefit to the employer:
The HRM practices and approaches provide benefits to the employer when they allow
employees to work effectively without their interference and provide a flexible working
environment. The company gets benefited from the employees efficiently working after
they felt their importance in the company and the employer also providing them other
benefits for their benefit and growth which also enhance profitability and productivity of
Amazon (Lussier and Hendon, 2015).
The benefit to the employee:
The HRM practices and approaches provide benefit to employees as the employer providing
them with effective services and benefits in order to work properly and help them in
achieving the business objectives. The benefits provide to them by an employer are flexible
working hours and environment, effective salary and bonus, the authority of problems
solving, health and safety measures etc. which results in the generation of productivity and
profit of Amazon (Lussier and Hendon, 2015).
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P4 & M3 EFFECTIVENESS OF HRM METHODS AND PRACTICES IN ORDER TO
RAISE ORGANIZATIONAL PROFIT AND PRODUCTIVITY
The practices of HRM help the company Amazon in achieving their business objectives as
well as it also results in increasing the productivity and profitability. The HR manager of the
company has the main motive to increase their sales and productivity and for which the
manager hired many new candidates who were having effective skills and innovation
strategies which provide benefit to the company in order to increase the productivity and
profit. The HRM methods also ensure that the employer and employee communicate well
and share their views and issues with each other to maintain their relationship for the
betterment of the company (Brewster, 2017).
The HRM methods and practices helped the company in selecting an appropriate candidate
for the company and the HR manager plans activities for providing them, effective training
for their development and growth which directly or indirectly affect the growth of the
company in a positive manner (Brewster, 2017). The manager of Amazon focuses on the
employee’s performance and makes their vision for increasing productivity and profit of the
company. The practices of HRM results in building innovative business environment for
motivating the employees towards their aspiration and the leaders provide them, guidance
and directions for achieving their goals (Lussier and Hendon, 2015).
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P5 & M4 ANALYZING AND EVALUATING IMPORTANCE OF EMPLOYEE
RELATION FOR INFLUENCING THE DECISION-MAKING OF HRM IN AMAZON
Employees are the asset of any organization, they play an important role in achieving the
business objectives as they are the main person of Amazon who shares their relationship
with other members of the company and works together efficiently for achieving their
targeted objective of the company. Their relationship gets stronger when the employer
allows them to join and be part of the decision-making process for the growth of the
company (Noe et al., 2015).
Employee’s engagement: engagement of employees in the tasks of the company as well as
in the decision-making process increase their ability to take their decisions for the
development of themselves and for the company (Mandl et al., 2015). Their contribution
within the company become very essential for increasing the result and profit as well as it
also helps in increasing the communication between the employer and employee to
maintain their relationship for the betterment of Amazon and its sales and profit.
Employee’s engagement increases belongingness towards the aspiration of the company
and their engagement directly influence the decision-making of Amazon (Mandl et al.,
2015).
Employee’s relation: the communication between employer and employees impacts
positively on their relationship where they can work effectively and effortlessly to increase
the profit of the company as well as customer satisfaction towards products and services of
Amazon (Mandl et al., 2015). Their relationship gets stronger when the employer provides
all facilities to the employee for their benefits like health and safety, accommodation
facility, allowances etc. which attracts them towards effective working and best results.
They also being provided effective services and benefits in order to work properly and help
them in achieving the business objectives (Mandl et al., 2015).
In this order, the employee's engagement and relation play an important role in Amazon for
achieving its targeted goals and objectives which also influences the decision-making of the
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company. If the relationship between employer and employee is strong then this affects
positively on the company in order to achieve its objective and vice versa (Noe et al., 2015).
HRM practices for employee engagement:
1. Communication: this is important to have proper communication between the
employees and employer within Amazon for leading to enhance the job performance
and resulting best in order to increase productivity and profitability (Lussier and
Hendon, 2015).
2. Empowering team: it is important for the HR manager to empower the team by
guiding, inspiring and supporting them for their development and growth. They also
enhance their performance which helps in attaining organizational objectives
(Lussier and Hendon, 2015).
3. Employee’s compensation: this has been given by the manager of Amazon to the
employees for their benefit and their retention in the company which is on the basis
non- biased payment (Mandl et al., 2015).
4. Feedback: this is called the response and reaction which comes from the
performance of the employees by the managers of Amazon. This may be negative or
positive which impact on the employee’s performance and business objectives
(Lussier and Hendon, 2015).
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