BUSM4554: Amazon's Contemporary Management Issues and Challenges

This report provides an in-depth analysis of contemporary management issues faced by Amazon, a leading company in the retail and e-commerce sectors. It examines challenges related to employee retention, high-pressure work environments, performance management systems, and employee well-being. The report highlights issues such as long working hours, high stress levels, and the impact of the "rank and yank" performance system on employee morale and turnover. It also explores Amazon's challenges in hiring and managing a large workforce, as well as its approach to climate change and employee health. Furthermore, the report discusses potential strategies for Amazon to address these issues, including implementing new techniques for employee management, improving performance management systems, and adhering to health and safety regulations. It also emphasizes the importance of employee engagement, retention policies, and the utilization of technology to reduce employee workload and improve overall business processes. The report concludes by emphasizing the need for Amazon to prioritize employee well-being and create a more sustainable and supportive work environment.

3/30/2020
Running Head: CONTEMPORARY ISSUES FOR MANAGEMENT 0
Contemporary issues for management
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CONTEMPORARY ISSUES FOR MANAGEMENT 1
Introduction
There are many companies in the retail business, which are facing different types of issues
and challenges in their business function especially e-commerce. Amazon is a well-known
company in the world that has created a giant image in the retail market as well as others. The
company has used different types of processes that are helpful in their business processes
including their stakeholders (Anderson, et al., 2009). In 1990, the company has started with
selling books, which has increased to most of the items. The firm has earned high revenue
from other valuable companies in the world including, Apple, Microsoft, and Google as well
(Brody, 2019). This report will analyse issues and challenges in front of Amazon and its
importance for the company. this report will discuss about the solutions to those issues by the
Amazon.
The issues and challenges in front of Amazon
Amazon has created a new image in the market based on technological innovation. In
addition, most of the ground-breaking innovations have used for achieving targets. The
company has used different web services for managing their business processes. However,
Amazon is the largest web services company as well as a formidable retailer in the world
(Azila & NoorNeeraj, 2011).
In addition, the company has faced employee retention, as the company has managed its
employees using proper human resources. However, according to a recent report, Amazon is
a punishing corporate environment in which employees have faced various issues including
long hours, high stress, disparaging bosses, which is a huge reason for lack of time for
recovery (BV, 2013).
It has created a huge impact on the employee’s turnover as well. Amazon has ranked 464
among the fortune 500 companies for employee turnover, which is a huge issue Amazon is
facing. According to CEO Jeff Bezos, “You can work long, hard, or smart, but at Amazon,
you can’t choose two out of three.” Thus, employees have changed their mind to work
continue in this company. employees have felt pressure in the company of 24/7 connectivity,
80+ work hours every week and more (Bharadwaj, et al., 2013).
Moreover, employees are a valuable stakeholder of a company. however, the company has
based on the employees and stakeholders as well. Besides, Amazon is using “rank and yank”
performance management systems in which lower rank employees will terminate every year.

CONTEMPORARY ISSUES FOR MANAGEMENT 2
Therefore, every employee has wired about the rank, which is a huge pressure in their mind
(Bloomberg, 2019).
The company has created a high-pressure environment that is not suitable for employees as
well. Moreover, this environment has affected the performance and productivity of
employees as well. Managers are not behaving in a proper channel with their employees,
which is a critical issue in front of employees (Brody, 2019).
In addition, performance measurement is necessary to appreciate employees but it makes a
huge impact on the rest of the employees as well, such as terminations and others. Besides,
sharing is not okay with the employees because it can be a personal loss as well. There are
different criteria for performance test and not everybody can pass this test (Calma, 2020).
Amazon has faced a real challenge in the hiring process, as thousands of employees every
year based on the requirements including temporary employees as well. Most of the
employees have replaced from another ones, which is based on their performance, as younger
employees have fewer commitments and more energy (Castelluccio, 2017).
Amazon has employed more than 613000 employees in the year 2019 not including 100000
temporary employees. Thus, it is a huge challenge to manage their business processes in a
better way. According to the size, turnover, and growth rate, the company should hire
thousands of employees to manage their busies processes in a better way (Chaffey, Dave &
White, 2010).
There are many changes in the structure of the company, which is beneficial for the company
and its employees. Moreover, the company has provided an option to vest. In addition,
amazon employee options vest at 5 % in the first year and 15% in the second year. It will
provide a 40 % vest in the four years (Chavan, 2013).
The company has faced issues in vest management. Relocation is a long process that takes
time. Moreover, the company has used structure. The company has not acetated low
performance because of any reason. There are many changes in basic services (Chen, et al.,
2012).
Moreover, climate change is an international issue that should be followed by Amazon as
well. In addition, the company has sent a letter to two employees regarding climate change
issues in front of the press. It was not in favour of the company as well as laws as well
(Chesbrough, 2010).

CONTEMPORARY ISSUES FOR MANAGEMENT 3
In addition, employees have taken medicine for painkilling because of extra work. It can be
an issue for employees and the company as well. Thus, employees have left the company in a
high level of pressure as well (DesJardins, 2014).
How can Amazon address the issues and challenges?
The company has innovated new techniques to resolve those issues that are faced by the
employees. Besides, the company has used a proper performance management system to
manage employees. However, it is a difficult test to perform better. Besides, there are many
changes in hiring and employee’s performance test (Ee, 2018).
Besides, there are many good things in the systems, which can be used for managing all the
processes. The company should take proper action about climate change issues and it is
necessary to take proper action for the employees as well (Evans, 2019).
Moreover, employees have faced different types of issues with their health, such as pain,
headache, mental pressure, stress, and many others. The company can provide holidays to
employees based on their performance and working hours. According to labour rules and
regulations (Gilmore, 2018).
Business intelligence (BI) is a beneficial for not only decision making as well as other
processes. Thus, BI should use for better management business functions (Isik, et al., 2013).
Most important part is that Amazon has developed new systems for better performance,
which makes huge impact on the employees and other stakeholders. Therefore, it should be
proper and accurate for all the stakeholders especially employees (Laguna & Marklund,
2011). Besides, supply chain system can be managed using different approaches with the help
of automations and other innovations as well (Nedelcu, 2013).
Moreover, employees have faced health issues because of long shift time without breaks, as
performance is necessary as well. It makes huge impact on their mental health as well as
personal life (Evans, 2019).
Feasible strategies for Amazon.
Amazon should include new strategies to reduce conflicts and other issues in the employees,
which can be a reason for huge losses. In addition, the company should follow international
and national health safety rules and regulations for employees. Moreover, in case of any

CONTEMPORARY ISSUES FOR MANAGEMENT 4
injury, the company should provide financial and other support to its employees. However, it
is necessary to take care about employees (Zeng, et al., 2012).
Besides, the company has ignored various things that are true about their leadership and bad
behavior with employees. An employee has provided their full efforts to complete their work
based on their age and other factors. Thus, it should be noticed by the company that an
employee should take rest every two hours, which is necessary to work for a long time
(Yannopoulos, 2011).
Moreover, employee retention is necessary for the company that makes a huge impact on
their productivity and cost. Human resources have faced many difficulties in their work
because of employee turnover. Therefore, before termini cation of an employee, the human
resource department should give a chance to recover their mistakes (Vom Brocke & Sinnl,
2011).
The employee's engagement strategy is the best way to manage employee’s turnover.
Moreover, extrinsic benefits must provide to employees to reduce the turnover of employees.
Therefore, Amazon can create better sustainability in their company (Vercellis, 2011).
The risks for Amazon
Employees are a big asset to a company. moreover, a stakeholder can affect the profit and
revenue of the company as well. Amazon should know about the risks because of the
employee’s turnover. Skilled employees are necessary to manage critical issues in different
processes. Thus, the company should know about the risks because of employees and other
challenges (Tkáč & Verner, 2016).
Besides, at the same time as a handful of facilities had been at or underneath the industry
common, monitor located that some facilities, such as the Eastvale warehouse. Besides, it has
been especially risky. Dixon’s changed into one in all 422 injuries recorded that year. It is not
a good thing for a well-known company in the world. Thus, it should be taking care by the
CEO of the company to reduce the workload of employees using technologies as well as
other techniques (Bloomberg, 2019).
Growth can be affected because of employees, as more than 100000 employees are temporary
that is a big issue in the company as well. Moreover, the company has denied about the
various truth that is important for a person according to ethics (Spitznagel, 2019). Climate
change is a huge issue in front of the company as well as the whole world. Thus, the company

CONTEMPORARY ISSUES FOR MANAGEMENT 5
should take proper action for it. However, Amazon has announced that the company will
reduce its greenhouse gas emission and it will be zero by 2040.
Furthermore, most of the employees have left the company because of their health issues.
Thus, the company should focus on those issues and reduce the workload of employees. In
addition, the company should take the help of automation and robotics as well. It will reduce
the risk of injuries in employees. It will reduce the problems of employees as well. Therefore,
technological innovation should use for decrying the physical efforts of employees, who have
faced medical issues with their health (Spitznagel, 2019).
Additionally, there are many changes in the industry that makes a huge impact on the
business processes of a company. most of the people can manage their job using their own
skills. Thus, skill development is necessary to manage their work with minimum hard work
with high efficiency. It will be beneficial for company as well as employees. Besides,
employee’s turnover ratio has increased because of less satisfaction in their job. Most
important thing is that company should aware about these things using employees’ feedbacks
and suggestions.
Moreover, Amazon is focusing on the performance and productivity that is based on the
employees and other stakeholders. Thus, it should be properly managed, as recruitment and
training processes take a huge cost of the company as well. Thus, employee’s turnover should
be minimized using different types of approaches including incentive, health care, and many
more (Azila & NoorNeeraj, 2011).
Amazon should focus on these things that are important for their future. Temporary
employees cannot provide huge benefits to the company. however, it is a backup plan for the
company to shift employees from other. Thus, it can be managed using crowdsourcing as
well. It can be better to manage number of employees using less pay with high numbers. In
addition, working hours should be less, as it can improve the performance of employees as
well (Bloomberg, 2019).
Most of the things can be managed using new business strategies, which will improv the
profit of the company as well. Retention policy can be changed to reduce employee’s
turnover. It will improve the basic process of the system as well. Most of the employee are
not satisfied with this approach. In addition, there are many good outcomes of this approach.
Most of the firms can be managed using various services (Gilmore, 2018).

CONTEMPORARY ISSUES FOR MANAGEMENT 6
In addition, there are many changes in the business processes of the company. it makes
changes in the employees’ productivity. Supply chain system has improved the work
efficiency of the employees. However, they are still suffering from various other issues.
Employees can manage their work using technology as well. Few of employees have shared
their issues with news channels as well. It makes huge issue in front of the company as well.
Thus, the company should focus on the internal issues with their stakeholder to reduce such
types of issues (Azila & NoorNeeraj, 2011).
Furthermore, Amazon should change employee management policy to reduce employee
turnover, which makes a huge impact on the financial status as well. Besides, it will improve
their productivity and accuracy.
Conclusion
In conclusion, Amazon has faced many critical issues and challenges in its business functions
especially employee turnover. The employee is an important part of a system, which can
make a huge impact on the company in terms of profit and revenue. This report has identified
the issues and challenges of Amazon, which can be a huge risk for the company as well.
Moreover, Amazon has faced many legal issues because of employee dissatisfaction and
other issues. The report has discussed about the feasible strategies for the company. This
report has discussed about the various things that are related with the employees including
health issues, turnover, and many others. Most important part is business strategies for profit
and revenue of the company. Besides, risk can increase because of all those issues. In
addition, Amazon should adopt new theories to manage their employees. Finally, employee
turnover can be a huge issue in front of the company and it will create a big risk for the
company as well in the future.

CONTEMPORARY ISSUES FOR MANAGEMENT 7
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