Organisation Culture, Structure, and Amazon's Performance Analysis

This case study examines Amazon's organisational culture and structure, focusing on their impact on sales and profit, especially during the coronavirus pandemic. It analyses Amazon's hierarchical structure, decentralised decision-making, and the influence of technology. The study identifies the use of role and task cultures within Amazon, highlighting how team formation and specialised roles enhance employee performance and contribute to increased sales. Furthermore, it discusses the importance of organisational behaviour, including various models like autocratic, custodian, supportive, collegial, and system models, in guiding employees toward success. The case study also explores factors based on the behavioural approach, such as personal characteristics (biographical and learned), environmental factors (employment level, wage rates, economic environment), and organisational factors (physical facilities, structure and design, leadership), that influence individual behaviour and ultimately drive high sales and profit at Amazon. Desklib provides access to this and many other solved assignments for students.

Organisation culture and
structure

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Organisation structure, culture and behaviour influencing Amazon profit and sales.................1
Discussing various factors based on behavioural approach that influencing individual
behaviour at amazon towards high sales and profit....................................................................4
CONCLUSION................................................................................................................................6
References:.......................................................................................................................................7

INTRODUCTION
For the success of the business organisation culture and structure is important. The
efficient organisation culture and structure depends on the company and its employees. The
organisation culture are business expectations which are unwritten rules that dictate work ethic
and entire business structure whereas organisation structure is legal structure for business which
carries formal system of roles and authority, organisation chart, policies and methods. The
culture and structure needs to very open, innovative and creative for the employees so that
satisfaction can be attain from work environment leading to success (Allameh, S.M and et.al.,
2017). The study is prepared on case study of Amazon. It is an multinational technology
company founded in 1994 by Jeff Bezos. It is largest online marketplace providing live-
streaming platform and cloud computing platform. In the study discussion is based on success of
Amazon during coronavirus pandemic which covers the organisation culture, structure and
behaviour influencing the amazon in achieving sales and profit. Further, based on behavioural
approach various factors is been discussed that influences individual behaviour at amazon.
MAIN BODY
Organisation structure, culture and behaviour influencing Amazon profit and sales.
Organisation structure
The organisation structure defines to rules, policies, norms developed by the company for
attaining organisational objectives. In the structure there is determination of how information
flow between level within the company. Each employee job is defined in the structure. The
structure provides visual representation to amazon that how it is shaped and move best forward
foe attaining goals. The amazon organisation structure is defined as hierarchical where
information flows from top to down. In the structure the top level executives makes decisions
which seems like bureaucratic structure(Ho, B.C and et.al., 2021). The hierarchy is in the form of
pyramid which demonstrates different level of management by depending on objectives. The
relationship between different position, departments and hierarchical management structure
makes organisation structure of amazon. The organisation structure influences profit and sales of
amazon by distributing authority and responsibility and able in managing its operations and
hierarchy of authority. The amazon has decentralised structure which which allows employees in
communicating and in business participation. The effective decision are made which motivates
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for better performing and staying loyal to organisation. Through this positive improvement,
innovation is shown in the assigned job which influences increase in sales and profit(Kashan, A.J
and et.al., 2021). The organisation size, technology influences organisation structure of amazon
as it wide in size leading to more work specialization. The use of innovative technology helps in
attracting more customers and due to Covid online shopping services was provided by the
amazon.
Organisation culture
This is crucial in evolving necessary traits for the business success. The organisation
culture is collection of values, expectations and practices which informs and guide the cations of
all team members. The positive culture leads improve in performance. The organisation culture
affects business from all aspects when workplace is aligned with employees they make feed
comfortable, supported and business environment is changed in context to amazon.
Organizational Culture includes the value, behaviour and attitudes of the employees (Khan, I.U
and et.al., 2021). The organizational culture contains the experiences, the philosophy of the
organization, which holds together the expression of the self-image, the interactions with the
outside world, the inner work and the future expectations. The classification of culture can be
divided into four types, including power, task. Role and person culture introduced by the Charles
handy model.
 Power culture- It is having centralised culture where decision making authority is in the
hands of few people. In the workplace they are recognised as important having and
responsibilities is delegated by themselves to other employees. The instructions of
superior is followed by subordinates and no freedom is given for expressing views or
sharing idea.
 Task culture- In this to deal with particular situation special groups are formed. The
team working helps in developing productivity. The team is formed by having common
interest and specialisation is bring in company. The contribution of team member is
equally which helps in accomplishing task in innovative way (Mansouri, A.A.A and
et.al., 2018).
 Role culture- The culture is based on rules. Employees have roles and responsibilities
based on their specialization, training and interests. In the work culture, power comes
with responsibility and each individual is responsible for something.
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 Person culture- There is collection of different people who are working for the same
organisation. The employees are made feel important in organisation and individual is
more concerned regrading own self. The Woking of employees in organisation is for sake
of money and eventually company suffers (Mogomotsi, P., 2019).
According to this, amazon uses role and task culture for attaining goals and influences the
company profit and sales. As in task culture team is formed which put efficiency in the working
which enhances the relationship and there is team building which ultimately improves
performance of employees. In the role culture the employees are skilled and duties is assigned on
the basis of their specialisation and interest which makes work more interesting and simpler for
performing. During pandemic the amazon provided the opportunity of online shopping for
customers which increases sales and profit as they were to make purchases according to their
choices and with offers on some products (Raptis, G.E and et.al., 2018). The organisation culture
affects group interaction with clients and stakeholders. The employees are influenced by
following clan culture as there is focus on mentorship and teamwork contributing in
collaboration and employees are committed towards collective objective.
Organisation behaviour
Organizational behaviour is a ground that contracts with human behaviour in
organizations. Organizational behaviour can be described as the learning and application of
knowledge about human behaviour related to other elements of the organization such as
structure, technology and social system. It refers to individuals and groups of people working on
a team and their interactions. In context to amazon the key task of organizational behaviour is to
proposal numerous guidelines to the company. The organisation behaviour helps in improving
job performance, increases job satisfaction, promoting innovation and leadership is encouraged.
The study of OB has greater importance in the company of amazon as skills are improved of
employees. It provides ability of using knowledge for becoming more efficient (Storm, L.K. And
et.al., 2021). The consumer buying behaviour is understand which benefits in improving
marketing process. The OB is a base for motivation. In context to amazon there is connection
between organisation culture and behaviour that guide employees towards the success. The OB
comprises of four elements of people, structure, technology and external environment.
Models of organisation behaviour
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 Autocratic model- It is based on strength, power and formal authority. The people are in
control of the tasks and having formal authority over employees to have look on them.
The lower level carries little responsibility for performing work. The key decisions are
made by top level.
 Custodian model- It focuses on employee economic security through wages and other
benefits that create employee loyalty and motivation. The benefits provided to employees
influence their behaviour leading to more growth and sales in context to amazon. The
increase of work skill, motivating employees will lead to competitive advantage.
 Supportive model- It is aimed for inspiring leaders which do not rely on control and
authority or incentives. There is focus on manager and employee relationship. Employees
are self-motivated and can bring value and insights into the organization beyond their
daily tasks. The aim of the model is to motivate employees through a positive work
environment in which they can contribute their ideas (Szczepańska-Woszczyna, K and
et.al.,2021).
 Collegial model- This refers to teamwork where everyone works together as colleagues.
A corporate culture and overall environment must be created that conforms to this model,
where everyone is actively involved and everyone is encouraged to work together to
build a better business in the context of Amazon. Managers are responsible for promoting
teamwork and creating positive, energetic workplaces.
 System model- It is one of the most modern forms of models in which the organization
takes into account the overall structure and the team environment with the individual
talents, potentials and goals. The system model tries to bring the goals of the individual in
line with the goals of the organization. In the context of Amazon, the majority of
employees strive for good pay, job security, and a positive work environment in which
the organization contributes to the community or its customers.
Discussing various factors based on behavioural approach that influencing individual
behaviour at amazon towards high sales and profit.
The behavioural approach suggests key for understanding development and behaviour is
observed and external stimuli in environment. The behavioural approach is theory of learning.
The behaviour of people is known as personality which is a combination of different qualities
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forming person character or nature. The behavioural approach states that behaviour are learned
through interaction with environment in context to amazon.
Individual behaviour defines behaviour in the workplace, which relates to the
combination of internal and external stimulus reactions. Individual behaviour is related to how
the person reacts in a given situation and expresses various emotions such as happiness, love,
rudeness and anger etc. Human behaviour is reflected in the work environment. Amazon's
business performance is influenced by individual behaviour. There are various factors that
influence the organizational behaviour of the individual.
A. Personal characters- The behaviour of the individual is influenced, which is further
divided into biographical and learned characteristics.
Biographic characteristics- The human characteristics are genetically inherited and
cannot be changed and individual possesses by birth. In the Amazon organization, if the manager
knows the limits and qualities of the employees who own them, they can use the behavioural
technique more effectively. Biographical characteristics include physical characteristics such as
age, gender, religion, war status, experience, etc.
Learned characteristics- It is defined as a permanent change in employee behaviour that
leads to interactions with the environment. The manager of the organization related to the
Amazon company is more interested in learning, studying and predicting the traits learned,
including personality, perceptions, values and attitudes (Tennakoon, T.M.M.P and et.al., 2021).
B. Environmental factors- The external environment plays an important role in the
person's behaviour.
Employment level- The worker's employment opportunities influence behaviour. In the
event of a lack of job satisfaction, the employee must remain in the same job due to the reduced
employment opportunities. The employee must be loyal to the company in order to increase
productivity. The more job opportunities offer a financial and psychological satisfaction as they
change jobs to find the ideal job.
Wage rates- The company's employees are concerned about the bets being offered to
them. The employee decision is directly influenced by the monetary conditions. Behaviour when
changing jobs is based on the wage factor that affects the individual (Porter, L., 2020).
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General economic environment- The employees have no influence on the economic
cycle, neither in the public service nor in public administration. The employees of the private
organization are affected by the stable income and job security.
C. Organisational factors- Individual behaviour is influenced by a wide variety of
resources and organizational systems.
Physical facilities- In the workplace, the physical environment is understood as the
arrangement of people and positive things that affect people. The behaviour of the individual is
influenced by certain factors such as cleanliness, light and the type of work in the context of
amazon.
Structure and design- It is concerned with the different department setup in the
organisation which considers what is reporting system, how lines of communication are formed
in different level of organisation. The position in which person fits influences the performance
and behaviour of the individual (Xiang, Q and et.al., 2020).
Leadership- The management system is established in organizational management, which
offers the individual appropriate support, advice and coaching. The behaviour of the individual is
more strongly influenced by the executives, since the behaviour of the executive is more
important than the qualities in the context of Amazon.
CONCLUSION
From above study it is being concluded that origination structure, culture and behaviour
enhances company performance. In the organisation culture and structure are interdependent
which clearly defines authority relationships and leads to better communication. The
organisation behaviour is made because of culture and structure. The employees remain loyal to
the organization, whose culture is innovative and encouraging; the manager is cooperative and
helpful and all people work together to achieve the common goals for the success of the
organization.
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References:
Books and Journals
Allameh, S.M and et.al., 2017. Relationship between knowledge management enablers,
organisational learning, and organisational innovation: an empirical investigation.
International Journal of Business Innovation and Research. 12(3). pp.294-314.
Ho, B.C and et.al., 2021. Building a conducive, engaged, and learning working environment
through sustainable and impactful organisational culture. International Journal of
Innovation and Sustainable Development. 15(3). pp.280-304.
Kashan, A.J and et.al., 2021. Unpacking organisational culture for innovation in Australian
mining industry. Resources Policy. 73. p.102149.
Khan, I.U and et.al., 2021. Is organisational culture a hurdle in online knowledge sharing? A
conceptual view. International Journal of Business Information Systems. 37(3). pp.336-
347.
Mansouri, A.A.A and et.al., 2018. Role of organisational culture, leadership and organisational
citizenship behaviour on knowledge management. International Journal of Knowledge
Management Studies. 9(2). pp.129-143.
Mogomotsi, P., 2019. Organisational Culture as an Antecedent of Workplace Deviance.
University of Johannesburg (South Africa).
Porter, L., 2020. Student behaviour: Theory and practice for teachers. Routledge.
Raptis, G.E and et.al., 2018. Effects of mixed-reality on players’ behaviour and immersion in a
cultural tourism game: A cognitive processing perspective. International Journal of
Human-Computer Studies, 114, pp.69-79.
Storm, L.K. And et.al., 2021. Organisational cultures of two successful Scandinavian handball
talent development environments: a comparative case study. Sports Coaching Review,
pp.1-23.
Szczepańska-Woszczyna, K and et.al.,2021. 15 Shareholders in creating the value of IT sector
companies by shaping organisational culture in the context of the digital economy.
Sustainability, Technology and Innovation 4.0, pp.304-316.
Tennakoon, T.M.M.P and et.al., 2021. Influence of organisational culture on knowledge
management in BIM-enabled construction environments. VINE Journal of Information
and Knowledge Management Systems.
Xiang, Q and et.al., 2020. Organisational improvisation as a path to new opportunity
identification for incumbent firms: An organisational learning view. Innovation. 22(4).
pp.422-446.
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