Organizational Behavior Report: Analyzing Amazon's Performance

This report presents a case study analysis of Amazon's organizational behavior, examining key areas where the company faces challenges. The report begins with an introduction to Amazon and its current situation, highlighting controversies related to its workplace culture. It then delves into specific issues within the organization, including lack of employee motivation, ineffective communication, leadership shortcomings, and a rigid organizational structure. For each issue, the report provides detailed recommendations aimed at improving the work environment and overall organizational performance. The recommendations cover various aspects such as implementing motivational theories, improving communication strategies, adopting effective leadership approaches, and restructuring the organization. An action plan is also presented to guide the implementation of these recommendations. The report concludes with a summary of the findings and a list of references.

Running head: ORGANIZATIONAL BEHAVIOUR
Organizational Behavior
Name of the Student:
Name of the University:
Author Note:

1ORGANIZATIONAL BEHAVIOUR
Executive Summary:
The report is an overview on a case study on Amazon, largest internet based retailer in the
United States. The report gives a brief introduction about the company and its present situation.
There is also discussion on the issues faced by the company and corresponding recommendations
provided against each of the issues. These issues however include motivation, communication,
leadership and organizational structure. The report also puts forward an action plan provided for
implementation of the recommendations.

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Table of Contents
Introduction......................................................................................................................................3
Areas Where Company Lacks Organizational Behavior.................................................................4
Motivation....................................................................................................................................4
Recommendations........................................................................................................................5
Communication............................................................................................................................6
Recommendations........................................................................................................................7
Leadership....................................................................................................................................8
Recommendations........................................................................................................................9
Organizational Structure............................................................................................................10
Recommendations......................................................................................................................11
Action Plan....................................................................................................................................12
Conclusion.....................................................................................................................................12
References......................................................................................................................................12

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Introduction
The report here discusses about Amazon and its present situation. Amazon is the largest
online retailer in United States. The company also features on the elite list of the Fortune
magazine where it ranked second in the year 2014 and fourth in the year 2015 1However, 2015
was as a controversial year for the company as there was controversy regarding the company in
the New York Times on how it pushes its white-collar workers for achieving the expanding
ambitions of the company. According to reports published in the New York Times, Amazon
focused on the promotion of unconventional office culture where employees were encouraged to
be critical not only about each other ideas in the meetings but also to send secret feedback about
their colleagues to the respective bosses2. Moreover, the employees also went through a bout of
physical stress in Amazon due to long work hours. They also faced rebuke and reprimanded
when they were unable to respond to emails arriving at midnight arrival. Thus, indirectly the
company adopted a policy where employees forced to work faster and harder until they
collapsed, quitted and faced termination. Therefore, most of the employees did not stay for long.
1 Streitfeld, J. (2017). Inside Amazon: Wrestling Big Ideas in a Bruising Workplace. Nytimes.com. Retrieved 12
November 2017, from https://www.nytimes.com/2015/08/16/technology/inside-amazon-wrestling-big-ideas-in-a-
bruising-workplace.html
2 Meyer, P. (2017). Amazon.com Inc.’s Organizational Culture Characteristics (An Analysis) - Panmore
Institute. Panmore Institute. Retrieved 12 November 2017, from http://panmore.com/amazon-com-inc-
organizational-culture-characteristics-analysis

4ORGANIZATIONAL BEHAVIOUR
The company also did not hire female employees; the few that the company had underwent
severe criticism despite contributing big time in the success of the company. Amidst everything,
the turnover of Amazon was so high that it even surpassed Walmart in terms of valuation of the
market. The year 1999 saw the company burdened with spiraling losses and debts. In such a
scenario, though the company wanted to undertake cost cutting but it could not do so3. However,
with controlled spending and top line growth the company is able to double its stock prices and
regain back its position.
Areas Where Company Lacks Organizational Behavior
Motivation
Amazon did not provide any positive motivation to the employees. Employees are only
encouraged to ruthlessly criticize about each other and send secret feedbacks to the immediate
bosses that sometimes lead to a hostile work environment. The company also led to physical
stress of the employees4. The employees forced to work overtime without receiving any benefit.
Moreover, employees reprimanded for not responding to midnight emails. The company also
forced employees to engage in lengthy conference calls especially on holidays. Thus, working in
Amazon meant working harder and faster until one collapses. The company though satisfied its
customers around the world but made the life within the organization almost impenetrable. The
3 Haughney, D. (2017). Expecting the Unexpected From Jeff Bezos. Nytimes.com. Retrieved 12 November 2017,
from http://www.nytimes.com/2013/08/18/business/expecting-the-unexpected-from-jeff-bezos.html
4 Amazon.in.(2017). Retrieved 12 November 2017, from https://www.amazon.in/Motivating-People-Doesnt-Work-
What/dp/1626561826

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company also believes in the policy of no mercy that implies that either employees fit into the
structure of the company or they do not. Thus, in Amazon there was not only lack of benefits but
also disregard towards work life balance5. Moreover, employees made to work for which they
never received any praises. There also existed unfair systems of ranking and purposeful
Darwinism within the company. This was a company that lacked team or group work.
Recommendations
Amazon can undertake effective motivation of its employees through better
communication, setting examples, empowering them, offering ideal opportunities for
advancement and by providing benefits in the form of incentives. There are however various
motivational theories that the company adopts for the purpose of motivation. This includes needs
theory, motivation hygiene theory, mclellands theory and expectancy theory. However, the
descriptions of the theories are as follows:
Needs Theory
The Needs Theory also referred as the Three Needs Theory represents a motivational
model that helps in explaining how needs for power, achievement and affiliation can affect
people’s actions from the managerial context6 David McClelland who is a psychologist proposes
this theory.
5 Nolan, H. (2017). "I Do Not Know One Person Who Is Happy at Amazon". Gawker. Retrieved 12
November 2017, from http://gawker.com/i-do-not-know-one-person-who-is-happy-at-amazon-1572478351
6 Reeve, J. (2012). A self-determination theory perspective on student engagement. In Handbook of research on
student engagement (pp. 149-172). Springer US.

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Motivation-Hygiene Theory
The Motivation Hygiene Theory focus on the fact that there are certain factors in work
place that leads to job satisfaction and existence of certain separate set of factors that causes
dissatisfaction7. The theory also known as the Frederick Herzberg's Two-Factor Theory
McClelland's Human Motivation Theory
According to human motivation theory of McClelland’s, every person possesses three
primary driving motivators8. These motivators however include power, affiliation, and needs for
achievement. The motivators develop through culture and life experience.
Expectancy Theory
This theory assumes that behavior is the resultant of the conscious choices amongst
alternatives that maximizes the pleasure and minimizes the pain9. According to this theory, the
performance of an employee depends on individual factors like skills, knowledge, personality,
ability and experience.
7 Ali, N. (2013). Motivation-Hygiene Theory: Applicability on Teachers. Journal of Managerial Sciences, 7(1).
8 Schwartz, S. H. (2012). An overview of the Schwartz theory of basic values. Online readings in Psychology and
Culture, 2(1), 11.
9 Renko, M., Kroeck, K. G., & Bullough, A. (2012). Expectancy theory and nascent entrepreneurship. Small
Business Economics, 39(3), 667-684.

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Communication
The communication in Amazon takes place by means of an anytime feedback tool which
is an internal platform used by the employees for criticizing or placing complain against their
colleagues10. This internal directory also allows the company to submit peer evaluations to the
management team. Thus, the anytime feedback tool also has a role to play in addition to being a
gossip tool. This medium also helps the employees to understand their stand in the company. The
company also follows a ‘Two Pizza Rule” that leads to decentralization and lack in
communication. According to the Amazon CEO, Jeff Bezos, meetings should take place when
there is an absolute need for it. Moreover, the CEO also stresses on the fact that the number of
members in a meeting should be such that two pizzas would be enough in feeding the entire
group11. Invitation of too much people in a meeting not only invites mass view but also results in
decrease of productivity.
Recommendations
However, Amazon can ensure effective communication by adopting the following
policies. Effective communication in a workplace not only helps in reduction of disputes
between employees but also the management.
By Adopting Transparency:
10 Keyton, J., Caputo, J. M., Ford, E. A., Fu, R., Leibowitz, S. A., Liu, T., ... & Wu, C. (2013). Investigating verbal
workplace communication behaviors. The Journal of Business Communication (1973), 50(2), 152-169.
11 The' 'Two Pizza Rule' Is Jeff Bezos' Secret To Productive Meetings. (2017). Business Insider. Retrieved 12
November 2017, from http://www.businessinsider.in/The-Two-Pizza-Rule-Is-Jeff-Bezos-Secret-To-Productive-
Meetings/articleshow/24896617.cms

8ORGANIZATIONAL BEHAVIOUR
Amazon can ensure effective communication by informing the employees about the goals
of the company and the general goals. Moreover, the company can ensure effective
communication between the management and employees through an open door policy that helps
employees in resolving the issues through direct communication with the higher authorities.
Thus, by being transparent Amazon will not only be able to build employee loyalty but also
enhance the retention rates.
By Organizing Workshops:
The workforce of Amazon believed to have employees from varied cultural backgrounds,
ethnicity and gender. The company can therefore undertake training workshops that uses role-
playing activities for teaching the employees better means of communicating with each other.
Thus, Amazon must initiate sensitivity training for employees on regular basis for teaching the
employees on the ways of dealing with different mannerisms and viewpoints of their co-workers.
Effective Screening of Candidates:
Workplace communication improved through effective screening of the communication
skills of the job candidates during the process of interview. Existing employees with imperfect
writing or computer skills should have sufficient training. To improve the communication
process in the company Amazon must do away with its policies for supporting employees to
indulge in ruthless communication and undertake policies of terminating those employees who
indulge in criticizing co-workers and customers and spread gossip. The company can also take
initiative in training the employees.
Building Relationships:

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Communication between the employees takes place only when there is a bond of trust
amongst the employees. Amazon rather than taking measures of poking the employees against
each other should encourage them to bond where they should talk to each other. To enables this,
the company should take the initiative of hosting various recreational events. This will not only
enable the employees to take part in the events but also provide a means where their efforts will
also make a difference. Such appreciation will enable them communicate with the each other but
also the management.
Leadership
As far as leadership is concerned, Amazon deliberately sets a standard that is
unreasonably higher. Although the high expectations are devised with the intentions of creating
talent of top tier but they become unreachable and creates unnecessary pressure on the
employees thereby leading to distress12. Instances of employees crying at their desk have been a
common sight. However, there are some who defends such higher expectations of the company
saying that employees who are unable to handle the demands are not the right fit for the job.
According to them, Amazon is a company that strives to reach the moon by making it big
through various innovative and ground breaking things. Thus, in Amazon the pressure to deliver
is beyond every metric of the company.
12 Amazon 6th Principle: Insist on the Highest Standards. (2017). Jesús Gil Hernández. Retrieved 12 November
2017, from http://jesusgilhernandez.com/2014/11/21/amazon-6th-principle-insist-on-the-highest-standards/

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The Amazon CEO, Jeff Bezos leadership style is overly forthright which implies frank,
direct and prepared to go to any extent for executing the things that he believes is true13. Thus,
his management style is largely an influence of his abrasive personality that includes dictating
others the ways to behave and possess a confidence that is overreaching in terms of metrics
power.
The company also engages in insensitive management. Amazon employees who
overcame personal hardships like miscarriages, cancer and other personal crisis said that they
underwent unfair judgment since they were forced to perform at the highest of their abilities
without even given sufficient time for recovery14. For instance, a female employee who just
experienced a miscarriage was told that there would be monitoring of her performance to ensure
that her focus stayed on the job which finally forced her to leave the company.
Recommendations
However for effective leadership the company needs to undertake the following steps
which include:
1. Possessing the Right Attitude: An effective leader must possess the right set of mind
for serving others.
13 5 Key Takeaways from Jeff Bezos' Leadership Style | Pagely®. (2017). Pagely®. Retrieved 12 November 2017,
from https://pagely.com/blog/2017/09/5-lessons-from-jeff-bezos-leadership-style/
14 Spicer, A. (2017). The tragedy behind Amazon’s toxic management fad | Andre Spicer. the Guardian. Retrieved
12 November 2017, from https://www.theguardian.com/commentisfree/2015/aug/17/amazon-management-fad-rank-
yank-jeff-bezos

11ORGANIZATIONAL BEHAVIOUR
2. Expressing Love for People: For ensuring the prevalence of effective leadership
leaders must be in love with the organizational relationship
3. By Being a Good Listener: Communication has a key role in the achievement of
organizational and interpersonal goals.
4. Compassionately Addressing the Truth: Truthfulness in a leadership is important and
it must be addressed in a compassionate manner.
5. By Being Proactive: Individuals who wear the hats of leaders must be proactive to deal
any situation and successfully move forward.
6. By Being Committed: It is necessary for the leader to have utmost commitment
towards the group.
7. Taking Risk: As leaders it is necessary to take risk by thinking out of the box and
being innovative.
8. Follow Policies and Procedures: Effective leaders adhere to procedures and policies
while taking any step.
Organizational Structure
The organizational structure of Amazon makes it difficult for the employees to climb the
corporate ladder. The CEO of the company believes that managers should enhance the
performance bar with each promotion and hire and only employees with out of the box talent
must progress within the company15. This made the CEO codify his beliefs into a custom known
15 Why It's So Difficult to Climb Amazon's Corporate Ladder. (2017). Mashable. Retrieved 12 November 2017,
from http://mashable.com/2013/10/15/amazons-corporate-ladder/#G2sYC4pHLSqq