Amazon Leadership and Management in Addressing Technological Changes

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MANAGEMENT AND
OPEARTIONS
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TABLE OF CONTENTS
Introduction......................................................................................................................................4
Main Body.......................................................................................................................................5
Define and compare different roles and characteristics of leader and manager in addressing the
huge technological changes happening in external environment................................................5
Critically analyze and evaluate role of leader and function of manager using relevant theories
and concepts.................................................................................................................................6
Present specific examples of how manager and leader can react to different forms of
operational challenges or situations in Amazon..........................................................................7
Apply different models including but not limited to situational, contingency and system
leadership to reflect the role of management and leadership at Amazon....................................8
Explain the main approaches of operation management and role that leaders and manager play
at Amazon..................................................................................................................................11
Evaluate how leaders and managers at Amazon can improve efficiencies of operational
management to successfully meet business objectives..............................................................12
Explain the importance and value of operation management in achieving business objectives
of Amazon.................................................................................................................................13
Consider critically evaluating the applications of operation management and factors that
impact on wider business environment......................................................................................14
Present an assessment of factors within business environments that impacts upon operational
management and decision making by leaders and managers at Amazon..................................14
Also present an analysis of how these different factors affects business environments and
wider community.......................................................................................................................15
Conclusion.....................................................................................................................................17
References......................................................................................................................................18
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LIST OF FIGURES
Figure 1: Leader’s role.....................................................................................................................6
Figure 2: Situational leadership model............................................................................................9
Figure 3: System approach model.................................................................................................10
Figure 4: Just in time approach plans............................................................................................12
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Introduction
Management operation is identified as key strength of organisation. The current study will aim at
explaining the manager role and leader function in reference to Amazon by consisting waste and
quality management aspects. The report will further discuss management and leadership theories
that play essential part in dealing with organisational challenges or situations that will discuss the
reaction of leaders and managers. The report will apply models and theories that will reflect the
leadership and management role by explaining system, contingency and situational approaches in
Amazon related to functional areas. Moreover, the study will explain operation management
approaches that will describe leader and manager role by evaluating efficiencies to improve the
operations for achieving business objectives. Further, it will emphasize on applications, value
and importance of operation management that affects business environment. At last, the factors
will be assessed that impact decision making and operational management in Amazon.
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Main Body
Define and compare different roles and characteristics of leader and manager in addressing the
huge technological changes happening in external environment
Amazon Inc is identified as multinational technological organisation that aims at e-commerce,
artificial intelligence and cloud computing strategies. It is known as the largest cloud computing
platform and e-commerce marketplace that is calculated by market capitalization and revenues. It
deals in products like Amazon Appstore, Echo, Kindle, Amazon Prime, Video, ComiXology etc.
It has yearly revenues of US$232.887 billion that employee 613,300 people in organisation. It
has also started to sell retail products that have given tough competition to Walmart’s traditional
stores of retail. The direction of business has prioritized by skilled leaders and managers that
have boosted its growth in billions (Little, et.al, 2016). The role of leader and manager is
described below.
Organisational manager is individual that holds responsibility of managing business by using
planning, organising, coordinating and controlling functions of management whereas leaders are
aimed at hosting shows by influencing and dominating team members of project towards planned
direction to achieve organisational goals. The managers of Amazon have better skills to recruit,
interview and guide people for cooperating with organisational policies by better performance
results for gaining rewards. On contrary, leader target is to build and develop strategies and plans
required to accomplish goals and objectives assigned by managers by better selection of people
according to project requirements.
Recently, Amazon has faced various technological changes from year 2015 in which leaders and
managers has played crucial role in accepting change and boosting profit growth. Following are
technical changes that address role of leader and manager in organization that includes:
 The marketing and timely deliveries of products increased after setting Amazon prime
that provides free and fast shipping. The technical change in organisation has increased
employees dedication towards work by manager’s positive force and leaders has paid full
contribution in directing team members for giving speedy and satisfied services (Meng
and Boyd, 2017).
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 Amazon has aimed at streamlining one click ordering process that has make purchases
easy and quick for customers. In achieving factor, manager has paid efforts by finding the
method of selecting choices and leaders has prepared team to access customer’s desires at
one click.
Critically analyze and evaluate role of leader and function of manager using relevant theories and
concepts
Different theories and models has initiated in Amazon workplace for conducting uninterrupted
operations and getting better results from management and leadership approaches for enhancing
technical abilities required for getting sustained business growth. Amazon has been constantly
using effective management strategies such as contingency theory for handling present situation
in business that requires technical ability of managers. For example – better management skills
has made largest internet organization in terms of revenue. Chaos theory for managing change in
firm has boosted functioning in Whole Foods Market by increasing $13.4 billion by mentioning
vast presence of firm in retail sector (Miner, 2015).
Figure 1: Leader’s role
(Source: Leadership Theories, 2018)
Further, it has determined as consistent performer by enhancing its leadership theories such as
trait theory from which innovative skills of leaders have developed like Kindle E-readers from
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Amazon’s Lab126 and Amazon Echo from Fire TV Stick that has given innovative techniques of
leaders in workplace. Positive attitude of leaders has initiated theory if behaviour from which
employees got positive motivation that has helped firm to become customer focused, strategising
for consumer services fulfilment and automated task consumer support. Hence, role of managers
and leaders has created strong base for competing in market through technical changes.
Present specific examples of how manager and leader can react to different forms of operational
challenges or situations in Amazon
Organisation effectively trust on management and leadership styles for developing planned and
required changes in operations by creating strategies for getting effective productivity. Theories
that are practised in organisation are interlinked with each other. The task, projects and issues are
properly studies by managers and leaders to solve operational problems that creates barrier in
preparing services (Cetindamar, et.al, 2016). Recently, Amazon is facing different operational
challenges like high cost of shipping, security breaches, data loss, ineffective supply chain
management, intense competition etc. It is essential for management of organisation to initiates
better leadership and management theories for handling the situations in effective manner
without getting customer complaints that aids in boosting sales and profits. Following are
theories and concepts that needs to initiated in organisation for eliminating problems faced in
operational activities by Amazon that includes:
Task Oriented Theory – It aids in preparing some required steps and procedures for conducting
task and production process through which employee performances can be calculated. Amazon
has issue mentioning high shipping cost for product delivery that creates intense pressure for
controlling cost to secure market image. Under such situation the organisational manager should
search methods that help in eliminating shipping cost from which customers might get affected
(Maylor, et.al, 2018). For example – to minimize cost has provided chances of free delivery by
mentioning highest amount for which customers has to buy products. Similarly, leaders must
prepare strategies with team mates to negotiate with suppliers regarding shopping cost that helps
in dealing with such problems.
Contingency Management Theory – It states that single style or process cannot benefits working
of organisation but it should analyze internal and external reasons for getting constant success.
The issue of data loss and security breach creates barriers in operation and business functioning.
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The managers of organisation should appoint team that manages IT problems and issues. The
employees from IT problem solving team must use antivirus programs, locking desktop screens,
etc for providing security to organisational data (Boer, et.al, 2017). In this respect, leader should
be appointed for IT team that list major problems that might impact business growth and success.
The data could be secured by putting password in files and saving with confidential data. The
security of campus, employees or customers can be managed by putting guards and cameras that
operates with one control room that can be managed by leaders of organisation.
Transactional Theory – The theory is prepared for providing rewards to employees in terms of
receiving better results in productivity. According to theory, it is essential to express and interact
the benefits of better production with efficiency to employees for which they will work in much
better manner by aiming their targets. The issue of supply chain in Amazon requires effective
interest of managers in which reasons should be identified that are creating problems to supplier
as well as organisation. The problems with supplier and manufacturing process must be reviewed
for dealing with problem effectively. On other side, leader must aim at asking employees related
to productivity graph, if found to be less, rewards must be introduced for best performers that
will increase capacity of production that will help in minimizing issues from manufacturer side.
Hence, the issues will get solved by motivating employees for not leaving any chances for doing
mistakes in producing products (Meuser, et.al, 2016).
Apply different models including but not limited to situational, contingency and system
leadership to reflect the role of management and leadership at Amazon
Amazon is constantly growing by internet platform that has created customer oriented services
across the globe by regularly increasing its customer’s base. Certain problems have identified in
organisation that is impacting its business operations. It is essential to initiate several leadership
approaches in different situations for taking out suitable solutions that are discussed below:
Situational Leadership – It was introduced by Ken Blanchard and Paul Hersey that mentioned
using of different styles of leadership by leaders and managers according to situations without
focusing on single method (Thompson and Glasø, 2015). It determines solutions to
circumstances by behaviour of leader that carries supportive and directive. For example – the
supply chain of Amazon is highly impacted from business operations due to access services that
cannot be managed easily. In such problems, the leaders and managers cannot initiate blind
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strategies as it requires technical skills and ability for dealing with situation. The organisation
has aimed to divide consumer based categories by using price differentiation plans that makes
supply chain working much effective. According to problem, Amazon must plan for setting own
transportation system for making delivery easier.
Figure 2: Situational leadership model
(Source: Alexander Todorov, 2017)
Chaos Theory – It explains that business goes through ups and down that requires to initiates
theories for change management for handling the operational issues. The problem of data loss
and security breach might impact customer’s faith and trust. Hence, constant updating of systems
and software has become essential that need manager and leaders to accept change with adaptive
nature (Azar and Vaidyanathan, 2016). Facing such issues might create curious in Amazon that
requires sudden implementation of ideas and programs that will secure information and data by
leaders. Therefore, using AWS for data encryption in hands of customer will help in dealing with
problem that requires adaptive nature to initiate changes in systems.
System Approach – The theory targets their operation enhancement across organisational and
country’s boundary for increasing their operations in effective manner. Amazon is conducting its
business across world by providing timely and satisfactory services to consumers but while
growing beyond boundaries it needed shipping facility of products and services that needs cost to
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be paid by customers and firm that is marked as to high and is not economical for customers
(Johansson, et.al, 2016). It creates barrier for which system theory by leaders should be practised
of enhancing operation carefully by searching the issues related to high shipping cost that can be
resolved just like it has developed prime charges in that buying to certain limit will provide free
delivery but areas where delivery is difficult charge high amount that needs to be settled for low.
Using the theory, leaders will be able to determine best strategies for lowering cost by
assembling right team for producing effective products.
Contingency Approach – The theory explain that single style of leadership cannot be marked as
best for organisational problems as it requires understanding external and internal conditions and
leader’s nature in firm. For example – maintaining security in data and campus requires various
solutions that that are essential for leader to study and prepare team to develop positive results.
Locking of systems, installing of antivirus programs, using current software etc are different
solutions to problems of Amazon. In such situation, contingency style allow leaders to practise
best method for handling problems by properly research reason from external and internal firm
environment (Fiedler, 2015).
Figure 3: System approach model
(Source; Maria Helena Guimaraes, 2010)
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Explain the main approaches of operation management and role that leaders and manager play at
Amazon
Operation management is defined as administration of activities and methods conducted in firm
for bringing productivity and quality in products for gaining higher business growth. Amazon is
highly indulged in internet services that create huge pressures on providing quality results and
services to customers for eliminating business risk (Anderson, et.al, 2015). It is essential for
organisational production department to identify the issues and problems that might impact its
market image and consumer base. In handling operations effectively, the organisation must
initiate different approaches to solve the issues in business which are as follows:
Total Quality Management – The approach is created to maintain the product quality for buyer
satisfaction that plays essential role in business growth. The managers are liable in Amazon for
controlling work quality according to consumer preferences. It is essential for initiate change in
products for betterment of quality by simplifying methods for targeting business objectives. The
standards and protocol are set to determine quality of product after completing operations. The
approach majorly aims on understanding working culture, market trends, consumer demands,
better utilisation of resources etc that provide quality products for enhancing business to match
planned business objectives.
Capacity Management – The managers of Amazon can manage production capacity by using
strategic planning, incorporating issues and incentive blocking (Van Riet and Demeulemeester,
2016). The capacity management through strategic style will helps in mitigating outputs and
resource for information technology. The concept of demand production should be followed for
producing access products as goods are produced only that much that it fulfils present and future
needs. The employee incentives are stopped for reducing production that will help in managing
quality and inventory cost in firm. At last, the issues related to resources and process of
production must be identified on time to search for better alternatives in managing product’s
capacity.
Just-In-Time Approach - The method is aimed at minimizing waste and defective materials that
are used in production process that also waste time of employees. Amazon initiates the method
for increasing their product demand that does not contain any waste or defective ingredient. The
cost of managing inventory can be reduced from the approach by predicting the consumer needs.
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Further, method is beneficial in reusing and recycling the waste products that helps in reducing
operation cost of Amazon hence boost chances of profit and revenue increments (Lai and Cheng,
2016).
Figure 4: Just in time approach plans
(Source: Shaik Moin, 2018)
Evaluate how leaders and managers at Amazon can improve efficiencies of operational
management to successfully meet business objectives
Amazon is highly involved in e-commerce business that requires improving its operations by
conducting variety of measures. The manager and leader of organisation aims at boosting quality
of operations that helps in increasing market share and brand image. For enhancing online retail
business following methods must be practised in firm for bringing correspondence change and
efficiencies which are as follows:
 The technology initiation should be up to date as it is major need for Amazon products.
For example – communication and information is highly advanced that it is convenient
and effective for targeting consumers that also supports highest efficiency in e-commerce
operations by organisation (Yanyushkin, et.al, 2016).
 The objectives must be supported by improving supply chain management by allowing
suppliers and consumers to access IT assets. For example – the website should allow
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