Detailed Analysis: Amazon's Management Process and Strategies

This essay provides an analysis of Amazon's management process, focusing on the company's performance management system. It highlights the use of performance metrics, feedback mechanisms, and rating systems to evaluate and improve employee performance. The essay discusses the 'Anytime Feedback Tool' and its role in providing both positive and critical feedback, which is then relayed to managers. It examines how Amazon avoids traditional appraisals in favor of data-driven performance evaluations. The essay also covers the organizational review process for top and bottom performers and how these evaluations influence decisions regarding bonuses and terminations. The conclusion emphasizes Amazon's commitment to leveraging employee performance to increase overall productivity and engagement, ultimately driving profitability. The references include sources like Perform Yard, ETS, Reflektive, and academic journals that support the analysis of Amazon's management strategies.

RUNNING HEAD: AMAZON MANAGEMENT PROCESS 0
2020
Amazon Management Process
Student’s DEtails-

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Process of Management Used by the Amazon
Performance management system is regarded as the process of appraising and measuring
the performance of the employees. This involves a systematic process by which the company can
make the monitoring of the performance and make the strategy for ongoing improvement (Van
Thielen, Bauwens, Audenaert, Van Waeyenberg, & Decramer, 2018). The essay has discussed
Amazon’s management process through the use of the performance management metrices which
are being used for the determination of the employee behavior.
Amazon management process includes the feedback system which prioritized the
customer and employee engagement. The company uses the feedback tool as the internal tool for
praising of the performance. Moreover, the Called Anytime Feedback Tool which is used by the
company to directly or criticize the performance of the co-workers anonymously. This feedback
is transferred to the manager. However, this feedback system is an important aspect of
performance management process in which the company can make the proper monitoring of the
employees and later take actions as per the results of the monitoring process which later decides
the rewards and recognitions to the employees. The feedback system was used to push the limits
of each and every employee and make significant contribution in the performance of the
employees into the organization. Moreover, Amazon has a clear reason for the management of
the performance of the employees and focus on the individual’s ability to test their own
contribution (Courtney, 2018). The advantage of the feedback system used is to make views
upon the decisions which uses the data driven approach which is taken by the employees
constructively.
Besides, Amazon uses the performance ratings as the process of performance
management and avoiding the traditional appraisals. For avoiding the traditional appraisals
which is often lengthy, the company has switched to the performance management through the
ratings which are used for the appraising the performance of the employees. In this, way each
and every employee is responsible for the array of metrices (Reflektive, 2016). Apart from this,
there are data-driven approach for the evaluation of the performance of the employees. The
company uses the organizational review for the employees who are top and bottom performers
who are later presented against the board of directors. The board later decides to fire or provide

AMAZON MANAGEMENT PROCESS 2
bonus on the basis of the results evaluated. This rating process is used by the company to
measure and evaluate the process. This can be helpful for the company to improved productivity
by the increased employee support (ETS, 2020). This process of performance management
allows the company to make an effective performance management which can later add to the
productivity of the company.
To conclude, it can be said that Amazon has been using the efficient performance
management system which focuses on improving the performance of the employees which later
focuses upon the entire profits through the improved performance. Moreover, performance
management process precisely focuses upon leveraging the employee’s performance and making
in increased approach towards the productivity of the company and making the employee
engaged.

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References
Courtney, J. (2018, October 2). How Does Amazon Do Performance Management? Retrieved
April 2, 2020, from Perform Yard: https://blog.performyard.com/how-does-amazon-do-
performance-management
ETS. (2020, January 1). Replacing performance ratings… How Amazon, Deloitte and Google do
it. Retrieved April 2, 2020, from ETS: https://www.etsplc.com/blog/replacing-
performance-ratings-how-amazon-deloitte-and-google-do-it/
Reflektive. (2016, November 16). Amazon’s New Performance Review Process Will Be
Employee-Focused. Retrieved April 2, 2020, from Reflektive:
https://www.reflektive.com/blog/amazon-performance-reviews/
Van Thielen, T., Bauwens, R., Audenaert, M., Van Waeyenberg, T., & Decramer, A. (2018).
How to foster the well-being of police officers: The role of the employee performance
management system. Evaluation and program planning, 70, 90-98. Retrieved from
https://sci-hub.tw/https://doi.org/10.1016/j.evalprogplan.2018.07.003