Amazon: Leadership, Management, and Operational Strategies

This report provides a comprehensive analysis of leadership and management practices within Amazon. It begins by comparing the roles and characteristics of leaders and managers, highlighting their distinct approaches and responsibilities. The report then examines how leaders and managers handle different situations, such as conflict, technological changes, and declining sales, showcasing their adaptability. Furthermore, it delves into various leadership theories, including situational, system, and contingency leadership, illustrating their application within Amazon's operational context. The report also explores key approaches to operation management and their significance, emphasizing the factors impacting operational efficiency and decision-making. This analysis offers valuable insights into how Amazon effectively manages its e-commerce business through strategic leadership and management techniques.

MANAGEMENT AND
OPERATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Comparison of role and characteristics of leader and manager..............................................1
LO 2.................................................................................................................................................3
P2 Role of leader and manage in different situations..................................................................3
P3 Apply different theories and models of leadership and management ...................................4
LO3..................................................................................................................................................8
P4 Key approaches of operation management and role of leader and managers into it..............8
P5 Importance of operation management....................................................................................9
LO4................................................................................................................................................10
P6 Factors within business environment that impact on operation management and decision
making by leaders and managers...............................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Leaders and managers are essential part of business unit , they both contribute well in
managing people in organisation. Operation management (OM) can be defined as process of
managing operational activities and controlling over these practices. It is considered as one of the
important part of business unit that aids the organisation in raising productivity and enhancing
profit of company to great extent. OM is the effective tool that helps in effective utilisation of
resources and minimising the cost of operations to great extent (Wild, 2017). Present study is
based on Amazon Inc., It is a multinational technology firm which sale its products and services
through e-commerce and cloud computing platforms. Current assignment will explain role of
leader and manager and will compare characteristics of both. Furthermore, study will describe
role and function of leaders and managers in different situations. It will explain different
approaches of operation management and importance of OM in business. In addition, report will
illustrate various factors that impact on operational efficiency of the organisation.
LO 1
P1 Comparison of role and characteristics of leader and manager
Amazon is a leading firm that is engaged in e-commerce business. It was founded in year
1994. Initially it started selling book through online platform but now firm is selling all kind of
products to consumers across the world. In the year 2018 it has generated profit of 232.887
billion and its operating income was 12.421 billion (Wu, 2016).
It implements flat organisational structure, it involves workers in decision making
process and take suggestions from those. This type of management structure aids the firm in
retaining skilled workers in the firm for longer duration.
Leader is the person who has responsibility to lead the team and influence the behaviour of
group members in order to accomplish organisational goal. On other hand, manager is the person
who has responsibility to manage things and train people so that they can contribute well in
achieving goal of business unit (Okuno, Kobayashi and Ishii, 2016). There is huge difference
between role and characteristics of leader and manager. This difference is explained as below:
Basis Leader Manager
Meaning Leader is the responsible
person in the company who
influence behaviour of its
Manager is the person who
controls over business
activities and manage entire
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subordinates and strategies of
person is followed by others
(Kapadia and et. al., 2018).
operations successfully.
Approach self-directed approach is
implemented by leaders
Managers of Amazon
implement plans planned
approach, they make plan for
each activity and then
implement it so that risk can
be minimised (Piercy and
Rich, 2015).
Subordinates Followers follow the
instruction of leaders
Employees have to follow
guidelines of managers.
Focus Leaders always emphasizes on
people. They ensure that their
followers feel happy and their
personal attributes do not get
affected by company’s
polices. Thus, they arrange the
work in such manner so that
people feel happy in
organisation (Shimamoto and
Nishikido, 2018).
Managers emphases more on
process and procedure. They
do not concentrate much on
employees as they are bound
to follow instruction of
higher authorities.
Managing approach Leaders inspire people and
individuals in company like to
follow their instructions. In
this manner, they manage the
activities in the organisation.
Managers manage things and
they focus on completing the
task only (Bertsimas, Kallus
and Hussain, 2016).
Change management Leaders always encourage
innovative ideas and bring
changes in the company. They
create change.
Managers of Amazon
implement changes.
Managers emphasizes on
company’s performance and
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accordingly they take
decision of making sudden
changes in the organisation.
Power Leaders make the person able
to lead others, thus, they
develop power within the
other individuals so that they
can become a good leader in
the future (Wang and et.al.,
2016).
Managers implies their
power to lead others, they
utilise their power so that
others can perform their
duties effectively.
LO 2
P2 Role of leader and manage in different situations
Leader and manager both are very important part of organisation. Both have to complete
different duties in order to accomplish goal of business unit successfully. It is duty of both leader
and manager to handle different situations in the organisation successfully.
Conflict Situation
It is the situation that affect business operations (Sgarbossa and De Leeuw, 2015).
Amazon is working well in the e-commerce industry; many times it has to face conflict situation
in organisation. In such condition it becomes different for manager and leader to deal with such
complex situation.
 In this condition managers play the role of negotiator. Manager calls both involved
person and negotiate with them. They listen the views of both persons and take the
decision in such manner so that it can be win-win situation for both. This negotiation
process helps the organisation in creating healthy workplace environment and enhancing
trust of employees to great extent (Adebanjo, Laosirihongthong and Samaranayake,
2016).
 On other hand, leaders play the role of relationship builder. They discuss the issues with
the employees and try to build strong relationship with their workers so that all the
individuals trust each other and such kind of conflict situations do not arise in the future.
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Role of leader aids the Amazon in retaining skilled employees in the organisation for
longer duration and raising their loyalty towards the brand.
Technological change
It is another situation that impact on business unit to great extent. Many times employees
resist when any kind of change take place in the organisation. Amazon has planned to implement
new technology in the organisation in order to provide faster services to its consumers (Sagnak,
Kazancoglu and Aksoy, 2019).
 In this condition manager’s role is to give training to staff members. By providing
necessary training to worker’s managers will be able to make them aware with the
necessity of such kind of changes and it will help in improving knowledge of staff as well
so that they can use or apply such new technique easily and can perform well in the
organisation.
 Whereas role of leader in this situation is to motivate the employees and create positive
workplace environment. By this way people will realise importance of this changes and
will give their full support to management (Machado and et.al., 2015).
Declining sales
It is another complex situation that face by Amazon before few years. If firm is unable to
generate sales, then it would impact on its sustainability to great extent.
 In this situation managers play the role of motivator, they provide incentives and bonuses
to the workers for their good performance. They encourage people to put extra efforts in
order to raise sales of business unit. This motivation will fulfil the needs of workers and
they will defiantly perform well in the business unit (Wu, Luo, Wang and Birge, 2016).
 On other hand leader’s role is to bring changes and implement new ideas that may help in
generating more sales and raising profit of the organisation. Individual discusses with
other workers and find innovative idea. This helps in making new strategies in order to
meet the common goal of organisation. This is also beneficial in order to fulfilling term
goal of the firm to great extent.
P3 Apply different theories and models of leadership and management
Leadership is the ability of person to lead others and bring changes in the organisation.
There are many theories of leadership. These are explained as below:
Situational leadership theory
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This is considered as most commonly used leadership style. It explains that leaders have
to understand different situation of company and accordingly it has to take their decision. There
is no specific kind of style that can be implemented by leader. It is essential for the person that to
emphases of level of complexity of the condition and accordingly implement the best suited style
of leadership (Six Sigma and Quality Management, 2019). For example: if employee turnover ratio
is increasing in Amazon then leaders have to behave friendly with other workers so that they can
discuss their problems with leader and individual can find rout cause of the issue. This would
help in finding correct solution to resolve that problem. But if people are behaving unethical in
the organisation then in such condition leader of Amazon has to behave hard so that all the
individuals can work in discipline manner (Piercy and Rich, 2015). If there is declining sales
then manager of Amazon has to motivate staff by giving them rewards and have to behave
friendly with them, it will help in boosting them and enhancing their performance so that sales
can be raised.
Advantage
 Situational leadership is beneficial in creating comfortable working environment in
organisation that helps in motivating people and retaining skilled staff in the firm for
longer duration.
 Situational leadership is able to motivate people and make them able to work in discipline
manner. Employee receives coaching from their supervisors, that enhances their abilities
and they perform better in the Amazon. It focuses on flexibility thus; it is beneficial in raising productivity of the organisation to
great extent (Okuno, Kobayashi and Ishii, 2016).
Disadvantages
 It only concentrates on immediate needs rather than paying attention on long term need.
Flexible leadership sometimes create confusion in the mind of workers.
 If leader of Amazon does not have necessary skill, then it would be difficult to
understand the situation and react accordingly.
System leadership theory
It is another kind of leadership theory that explains that there is inter relationship between
various organisational parts. It emphasizes more on holistic views in order to resolve business
problems. System leadership explains that it is essential to involve human being and believe that
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if there is clear organisation structure then it would help in improving productivity of the
company (Wu, Luo, Wang and Birge, 2016). If Amazon plans technological changes in business
unit, then leaders have to develop relationship among all departments and have to enhance
coordination among employees. This will help in minimising resistance and implementing this
changes effectively. Managers have to closely monitor performance of all workers so that
technological changes can give desired results.
Advantage
 Leaders or managers of Amazon look upon the macro factors and accordingly take the
decision that helps in smooth functioning of business.
 This is dynamic in nature and emphases on uniformity in decision making process.
Disadvantage
 This do not much concentrate on practical decision, only consider human views that
sometimes give negative results to Amazon.
 There is no specific classification of inter dependency of different departments
(Sgarbossa and De Leeuw, 2015).
Contingency leadership theory
This is the type of theory that believes that there is not a single specific way through
which people can be managed. This theory explains that planning, controlling all kind of
activities are highly depended upon the circumstances and actual atmosphere. It is very important
for managers to pay close emphases on existing market situation and make strategies
accordingly. As they have great experience and knowledge thus, it is beneficial in making
correct strategies by looking at the different situations (Adebanjo, Laosirihongthong and
Samaranayake, 2016). If there is conflict situation in Amazon then manager of Amazon has to
plan things properly and have to negotiate with involve persons. Furthermore, leaders have to
discuss the issues with employees and have to resole them with mutual understanding.
Advantage
 This approach is flexible in nature and always transform business policies asper the
changing situation of market.
 It believes that mangers have to look upon the external situations so that best decisions
can be taken. that helps in raising profitability of company and meeting the organisational
goal.
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 Leaders of Amazon have great experience thus, they can take better decision and can plan
activities accordingly (Six Sigma and Quality Management, 2019).
Disadvantage
 External situations are not fixed thus it is not always possible to take correct decision.
 If leaders have no experience, then individual may get fail to take right judgement.
Chaos theory
It is the type of management theory that works on new paradigm, it concentrates on
progressively complex outcomes. This model explains that how a manager can utilise resources
well and can convert raw material into desirable output. This guides managers to deal with
uncertain situations properly and minimise complex or critical situations in the organisation. If
sales of Amazon is getting down then in this condition managers of Amazon has to utilise
resources well by monitoring the working of business. Leaders have to encourage people and
have to guid them well so that all workers an perform their work properly.
Advantage
 It believes in quick adjustments thus, if any kind of complex situation arise then
managers can manage the things effectively (Kapadia and et.al., 2018). It continuously makes changes in working in order to meet the organisational goal.
Disadvantage
 restructuring sometimes create negative atmosphere at workplace of Amazon.
 Long term planning in chaos theory is quit different because of continuous changes.
Management by objective theory (MBO)
MBO is the management model that always emphases on improving performance of
company to great extent. It explains that managers have to set goal and have to encourage its
workers so that they become loyal and committed towards the firm and contribute well in
achieving the organisational goal (Wild, 2017). If technological changes are taking place in
Amazon then managers has to set goal and plan activities so that all people ca work accordingly.
Leaders of Amazon has to develop relationship with employees so that they become committed
and perform well in organisation.
Advantage
 It emphases on performance improvement by motivating people. It is simple and systematic approach that aids in accomplishing organisational goal.
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Disadvantage
 MBO approach ignores prevailing culture and do not focus on working condition of
organisation.
 Existing situations or external conditions are ignored by managers (Kapadia and et.al.,
2018).
LO3
P4 Key approaches of operation management and role of leader and managers into it
Operation management is the process of managing operations and raising efficiency of
operations as well. There are various approaches of OM,
Six sigma
It is the methodology that emphasizes on eliminating errors and raising quality of
operations or products as well. Amazon implements this OM approach. Six sigma application
aids the Amazon in paying more attention on quality and detecting errors that affect quality of
products and services. By implementing this OM approach Amazon become able to provide
quick and quality services to consumers that enhances satisfaction level of consumers to great
extent. DMAIC and DMADV are two major methods of Six sigma (Sgarbossa and De Leeuw,
2015). DMAIC method is generally implemented by Amazon, it define the problem
first ,measure it and find out the actual cause of problem. After than enterprise analyses data and
improve the current process. This helps the organisation in controlling over entire process and
meeting the quality aspect as well.
Leader and manager of the Amazon provide full support to employees and show their
experience at workplace so that workers can deal with consumers well and can offer them
satisfactory services as well. Manager and leader of Amazon raise team commitment so that all
the team members work together and contribute well in achieving the goal of business unit.
Total quality management (TQM)
It is most commonly used approach of operation management that emphases on long term
goal achievement. It pays attention on continuous improvement so that enterprise can meet with
its organisational goal (Sagnak, Kazancoglu and Aksoy, 2019). Amazon implements this tool
and measure quality in term of reliability, durability. It makes changes in strategies and improve
the existing working process so that wastage can be minimised and durability of product can be
improved. This helps the Amazon in enhancing satisfaction level of consumers to great extent
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and making them loyal consumers as well. Continuous improvement is a time taking process but
it aids in improving designing process and ensuring that clients receive superior quality products
all the time.
Managers of Amazon play the role of monitor and they continuous supervise the working
process. This helps them in identifying the actual problem and taking right action to solve that
quality issue timely (Wu, Luo, Wang and Birge, 2016). Furthermore, leader plays the role of
motivator that encourage workers so that they provide satisfactory services to consumers.
Lean manufacturing approach
Lean manufacturing is the type of method that emphases on raising efficiency level of
operations. This method is implemented by Amazon to minimise wastage. Sometimes wastage
increases because of over burden and unevenness of work. Lean process add value in
manufacturing process so that wastage can be minimised (Sgarbossa and De Leeuw, 2015).
Amazon can minimise its operational cost by implemented this method and can raise operational
efficiency to great extent.
Manager plays role of monitor and supervisor and observe the mistakes in operational
process that aids in minimising wastage and implementing innovative ideas that may add value
to business. Leader's role is to guide people well and develop relationship with them so that
employees feel happy and put their hard efforts to accomplish goal of Amazon.
P5 Importance of operation management
Operation management is the systematic process that monitor and control over production
process. Operation manager of Amazon is responsible for timely delivery of goods and services
to consumers and converting input to output in cost effective manner (Shimamoto and Nishikido,
2018). OM is essential part of business unit, it adds value to organisation and support in meeting
with its organisational goal.
 OM is an important tool that supports Amazon in improving quality of goods and
services to great extent. It enables the firm in identifying issues in operations or
production process so that durability and reliability of products can b improved. By
implementing principles of operation management Amazon can enhance efficiency of its
operations can deliver A level products to its valuable consumers (Wu, 2016).
 Amazon implements six sigma approach of OM that aids the business in offering
satisfactory services to consumers on time. By this way, customers feel happy and they
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become loyal towards the brand. Operation management process ensure needs of
consumers and utilise resources in effective manner so that enterprise can offer cost
effective goods to customers (Piercy and Rich, 2015).
 Revenue enhancement is another great benefit of operation management. By
implementing approaches of OM such as lean manufacturing and TQM, Amazon can
minimise cost and can enhance its profitability to great extent. It is beneficial in
enhancing reputation of the company in market greatly and gaining competitive
advantage as well. Continuous improvement OM approach is helpful for company in
growing continuously and enhancing its number of customers as well. Furthermore, it is
also important in improving level of productivity of organisation as well (Kapadia and
et.al., 2018).
 Wastage reduction is another benefit of operation management. By implementing
operation management process Amazon can identify issues in operations and can
eliminate it successfully. This is beneficial in reducing cost and utilising resources
effectively. Amazon can manage inventory cost successfully and can improve
productivity as well (Wang and et.al., 2016). Operation management approach aids the business in developing relationship among all
employees, as leader has to monitor operational activities closely and has to motivate
people so that they perform their duties well. This is helping in developing trusts of
employees and they work together for achieving the long term goal of the company
significantly.
Value of Operation management
OM creates value to Amazon, as it helps in minimising operational cost and support in
raising profit of company to great extent. By this way f firm can raise quality of products ad can
enhance satisfaction level of consumers to great extent.
LO4
P6 Factors within business environment that impact on operation management and decision
making by leaders and managers
There are several elements that have high impact over operational management activities of
organisation to great extent. These components are explained as below:
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