Analysis of Leadership and Management at Amazon: A Case Study

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Management and Leadership Perspectives

Executive Summary
In this study, a report on the leadership and managerial roles will be structured. A case study on a
contemporary business organisation will be carried out in this context to align the same. Amazon
is chosen here as an example of business firm for this study. It is a multinational online retailer
brand based in the UK. The study also consists of the decision-making and motivational abilities
of the leaders and managers of Amazon. The study will comprise of the discussion on the need
of incorporating organisational change within the chosen organisation. Already, the company has
obtained a high market position in the retail industry. The requirement for incorporating the
change will be discussed to maintain its position and enhance it in future. The study will project
its vision, mission along with impact of present leadership and management prevalent in the
working environment on it. Various tools and change models will support the analysis.

Table of Contents
Introduction......................................................................................................................................4
LO1..................................................................................................................................................5
LO3..................................................................................................................................................7
LO4..................................................................................................................................................9
LO5................................................................................................................................................10
LO6................................................................................................................................................12
Conclusion.....................................................................................................................................14
Recommendations..........................................................................................................................15
Reference List................................................................................................................................16

Introduction
In this study, several theories on leadership and management will be discussed along with their
effectiveness in the chosen organisation. Amazon will be chosen as here an example of a
contemporary organisation, which operates online in the retailer industry in the UK. The
leadership and managerial roles in the chosen organisation play a significant role in the effective
decision-making. Moreover, how the motivational activities performed by the managers and
leaders in Amazon will also be elaborately explained in this context. Most of the studies will be
supported with a number of leadership and management theories containing the characteristics
features of a manager and a leader in a particular context or business environment. Each of the
theoretical applications are analysed in the context of Amazon in order to check the suitability.
Finally, the concerned business organisation namely Amazon will be recommended to achieve
business goals in management and leadership perspectives (amazon.co.uk 2019).

LO1
Identify key theories and perspectives of leadership and management within a range of
contexts and diverse environments.
Taylor’s Scientific Approach:
According to the management theory proposed by Frederick Winslow Taylor, the improvement
of economic structure, flow of work and labour productivity can be carried out through scientific
approaches. He emphasises on a simple working profile under which all the internal factors
within an organisation can be developed without raising any kind of complexities or adverse
business scenarios. This theory also known as he explained Taylorism as the concepts
described in this context. Moreover, this theory also tells about how the Human Resource
Management (HRM) practices can contribute in order to develop a sustainable environment to
cope up with external challenges. In order to survive in an adverse scenario, the organisation
should be strong internally such that it can operate scientifically. Moreover, its online structure
helps in growing it as a scientifically strong organisation (Su, 2017).
Amazon is a well-established and reputed retailer over the years. Hence, it is obvious for such
kind of an organisation to follow this scientific theory in making profit and hence growth.
Having a large number of employees working under the same management, Amazon should
maintain a simple working structure following this scientific theory. Still, it is an obvious fact
that the success story of Amazon is written in the basis of its scientific approaches.
Situational or Contingency Theory:
According to the contingency theory, no theory can be applicable to all kinds of business
situations. Hence, it is convenient to follow different theories in different business environments.
A leader or manager then should make decisions accordingly depending upon the situations.
Moreover, this theory states about an internal and external analysis that should be taken by a
business firm beforehand in order to take precautions for any adverse situations. A team leader or
a manger is tested as per his or her situation handling abilities falling under this theoretical
category (Otley, 2016).

In the context of this case study on Amazon, it can be stated that the company should follow this
theory in order to cope up with the uncertainties regarding Brexit effect on the UK economy.
However, in doing so, a precaution can be taken beforehand as stated above. The instability of
the economic factors makes Amazon to follow situational theory. Hence, it is more relevant and
convenient as well to incorporate this theory in its corporate strategy. However, this effect is not
supposed to affect the operations of Amazon in the outside markets of the UK (Jain and Sharma,
2017).

LO3
Analyse and apply motivational and team is working principles and theory to effective
styles of management and leadership.
Maslow’s Theory:
The motivational theory that was developed by Abraham Maslow was based on a psychological
study. According to this theory, there exists some hierarchical needs based on human motivation
following which a human being can be enough motivated through his or her psychological
development. According to Maslow, the five basic needs that can inject motivation to an
individual’s work needs are-
 Safety
 Psychology
 Esteem
 Belongings or love
 Self-actualisation
In this theory, it is mentioned that in order to achieve an efficient performance overall, these five
basic needs require to be emphasised up by a business firm or organisation (D'Souza and Gurin,
2016).
Adam’s Equity Theory:
The motivational theory that was first identified by John Stacey Adams is focused on the equity
and balanced payment structure. According to him, a well-organised firm can run its business
successfully if and only if it acquires equity. The equity means here to have an equal amount of
payment against a fair amount of labour. It is attached at the very basic of this theory that, an
individual can deliver efficient amount productivity if he or she gets a fair amount of payment
against it (Ryan, 2016).
Team Effectiveness Model:

An effective team can be built by following an effective team model that gives a guideline about
how it can help in maintaining a high productivity rate of a team. There are such six different
models namely-
 Katzenbach and Smith’s model
 Richard Hackman’s model for building an effective team
 LaFasto and Larson’s dynamic model of efficient collaboration and group work
 T7 model of team effectiveness
 Bruce Tuckman’s sequential group improvement model
 Lencioni’s model containing five possible internal dysfunctions in a team
Among these five mentioned models, Lencioni’s model describes about the possible
dysfunctional elements so that a team can build as an effective one overcoming these challenges
(Zoogah et al., 2015).
Application and Analysis:
Now in this context of case study on Amazon, it can be stated after analysing all the above-
mentioned theories that the company can develop Maslow’s theory emphasising on the
motivational needs that can help in boosting an individual’s performance with practical
applications. Moreover, Adam’s equity theory is also relevant for a large organisation like
Amazon. However, each of all the six team effective models mentioned can be effectively
fruitful for Amazon.

LO4
Analyse how effective management and leadership can contribute to organisational
effectiveness within its ethics and values framework.
Leadership Characteristics: Values and ethics are two vital professional qualities that should
be included in the leadership characteristics for a better output.
Ethics- The ethical facts that should be included in the characteristics of a leader can be broadly
classified in the categories namely dignity, morality, and respect. Accordingly, these qualities
are supposed be maintained throughout the team.
Values- Moreover, leaders should give values to their work so that he or she can set himself as
an example before the other team members or subordinates (Freeman, 2016).
Application of effective management and leadership on Amazon:
Effective leadership is attained through abiding the ethical as well as value-based leadership.
This kind of leadership and management is very much essential for a globally renowned
organisation like Amazon. The present stature and position of the organisation in the retail
industry gives the evidence of maintenance of effective leadership and management within the
organisation. Both ethical and value-based leadership is maintained the management of the
organisation without which it would not have been possible for the organisation to attain such
leading position in the world. As an effect of impactful healthy leadership prevailing within the
organisation, it has been able to earn such brand value and customer satisfaction level.
Since its foundation, the organisation has provided discounts and voucher coupons on a regular
basis for dragging the attention of the customers and making them satisfied by catering to all
their needs. A varied range of products and a varied price range for it are offered by the
organisation. It implies that Amazon has successfully catered to the needs of all sorts of
consumers belonging to various classes in the society. As a result, the trust value of the
organisation has increased at a significant rate.

LO5
Demonstrate and debate the effectiveness of leadership and management behaviours on the
impact of the organisation’s vision and mission.
Mission of Amazon: The founder of the Amazon, Jeff Bezos set the mission of the organisation
of catering to the requirements of all sorts of customers at the least possible price maintaining the
effective selection process. Through their mission, the organisation defined its goals and
objectives.
Vision of Amazon: The vision of the organisation is to achieve the leading position in the retail
industry. It aspires to become the most effective customer-centric organisation in the world.
They dream to offer every kind of product that a customer can search for from any corner of the
world that also online.
The vision and mission of Amazon specifies elaborately their targets, objectives, and values
(amazon.co.uk 2019).
Types of Culture prevalent within the organisation: The type of culture maintained within the
organisation alloys the employees to work for passionate and smart customers who are
purchasing their products offered. The organisation works in a collaborative culture, as many
brands are partners of the organisation and jointly they serve the customer demands. Cross-
culture management is found within the organisation as it works with a huge number of
employees all over the world (About Amazon. 2019).
Types of Leadership prevalent within the organisation: Amazon has specified a list of
leadership principles for the working leaders of the organisation. They demand the criteria of
abiding all the principles to become a perfect leader. Situational leadership is preferred by the
organisation (Rossman, 2016).
Impact and Analysis of the management and leadership on the vision of the organisation:
The organisation has always tried to incorporate innovative technologies within its operation. For
this purpose, they have recruited efficient leaders who are capable enough to handle all the
challenging situations. The leader posses the desired to skills to drive the company out of the

challenges faced due to competitors in the industry. Amazon has maintained collaborative
teamwork within the organisation for which they have been successful to compete with other
rival companies like Argos, eBay etc.