HR Report: Value and Contribution to Organisational Success

This report delves into the critical role of Human Resources (HR) and its contribution to organizational success. It begins by defining organizational design and its importance, using Amazon as a case study to illustrate the benefits of effective design. The report then examines various HR approaches and techniques for attracting, maintaining, developing, and rewarding human resources, including motivation theories such as Maslow's Hierarchy of Needs, Herzberg's Hygiene Motivation Theory, Expectancy Theory, and Equity Theory. The application of Human Capital Theory is also explored. The report further discusses the use of contemporary knowledge to support emerging HR developments and the relationship between organizational design and change management. The analysis highlights how HR strategies can contribute to employee engagement, productivity, and overall organizational performance, providing valuable insights for HR professionals and business leaders. It also makes use of McKinsey’s 7S model for evaluation of company’s structure.

HR: Value and
Contribution to
Organisational
Success

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Importance of organisational design theory...........................................................................3
TASK 2............................................................................................................................................7
P2 Different approaches and techniques used for attracting, maintaining, developing and
rewarding human resources.........................................................................................................7
TASK 3..........................................................................................................................................10
P3 Use of contemporary knowledge to support evidence for emerging HR developments.....10
TASK 4..........................................................................................................................................11
P4 Organisational design has to respond and adapt to change management and the relationship
...................................................................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Personnel management of organisation is very important process that is being organised
by human resource manager. HR organise various activities such as recruitment, selection,
training, rewarding and development and many other activities with managing ER within the
enterprise (Armstrong and Taylor, 2014). This assists in gaining more work productivity of
company as this provide major part in enhancement of company's performance. This report will
evaluate the motivation need, experience as well as knowledge to implicate the proper analysis in
order to support the organisation. It will evaluate the relation between organisational design and
management of change.
TASK 1
P1 Importance of organisational design theory
Organisational design can be defined as the techniques which assist in reaching to the
certain and proper integration combination along with the differentiation of operations or
activities of company in order to respond the uncertain external environment level. It is a step-by
step procedure or techniques by which dysfunctional aspects, structure, process or flow of
workplace is recognised that is utilised for meeting the business goals and creating more changes
in company. This can helps in leading the organisation toward the empowerments of worker as
well as effective designs to company (Arrowsmith and Parker, 2013). Amazon is cloud
computing and electronic commerce organisation that have been enlisted as largest online
retailing company in the global market in terms of market capitalisation and revenues. The
company opt more consumer-centric approach that helps in achieving their objectives.
Organisation design can assist the company in managing effective relations with company along
with managing their consumer relations (The Importance of Organizational Design and
Structure, 2011). Here are mentioned some of the major benefits of this techniques discussed
under:
 Support excellent services of consumer.
 Increase in the profitability.
 Reduce the company's operation cost.
 Improvement in the efficiencies and time cycle.
 Worker engagement and commitment with culture.
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 Clear and effective strategy growth.
Organisation design models and theories is essential for a corporation like Amazon in
order to administrate their entire organisation structure and accomplishing their strategy of
company in disciplines format (Berman and et. al., 2012). Henceforth, there are numerous
theories and models that can be opted by 7S model etc. As Amazon has wide staff members
group i.e. approximate 51, 300 in more than 500 companies, most suitable methods or model in
context of company is 7S model of McKinsey which is elaborated as below:
McKinsey’s 7S model
The 7S framework of McKinsey can be explained as management model explored by
Tom Peters and Robert H. Waterman, very popular business-consultant in 1980s. This models
presents a strategic group vision to involve the teams, business units and businesses. The model
is often used for monitor and assess the internal organizational environment through analyzing
the company tools i.e. structure, skills, staff, style, system, strategy and shared values. Skills,
style, share values and staffs can be considered as 'soft' (Aswathappa, 2013). They refer to hard
elements with other e.g. strategy, system and structure etc. Here are discussed entire mentioned
elements in context of Amazon under:
Source 1: McKinsey's 7S model, 2018
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Illustration 1: McKinsey's 7S model

 Strategy: Amazon sticks to business strategy of cost leadership. The largest online
retailer in the entire world which has been able to sustain and develop with this strategy
cause of innovation in business process, economies of scale and constant diversification
of business (Boxall and Purcell, 2011). The organisation operates their business in more
than 14 nations as well as owns a separate domain for each nation. The success of
company can be credited to their attribute of consumer-centric approaches that can
maintain and trains efficiently. Moreover, the strategy of business places a huge emphasis
on the communication encouraging between numerous ecosystem components. These
Amazon ecosystem elements consist of writers, reviewers, app developers, publishers,
merchants, along with analysts, commentators etc. Structure: Organisational structure of Amazon is hierarchical. This is complex process
for enterprise to optimise an modified or alternative framework like matrix or divisional
cause of gigantic size of company (Aubry and Hobbs, 2011). The company follows the
levels series denoting individual's work position. Jeff Bezos, CEO of company
commands the employee as well as cascading management and authorities at the very
top. These hierarchies are managed by Amazon throughout several geographic locations
from entire world. System: Amazon has been facilitated from wide range system range for managing the
whole company in ideal way. These consist of worker selection and recruitment
framework, system of processing transaction, consumer relationship administration
framework, knowledge and information management system, business intelligence
framework etc. The organisation critically analyse all of these frameworks in certain way
focusing over the efficiency increment which is leading business to their competitive
edge. Shared Values: One essential elements of Amazon's shared values is their consumer
obsession. The vision of Amazon company is to become the most consumer centric
organisation and reach in entire market. For this, the company use effective leadership
principles are utilised in order to reduce the hurdles in the success and decisions of
organisation. Style: Amazon follow effective style of leadership and prefer to accomplish the
requirements of consumers in order to focus over the outcome (Boxall, 2013). The
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company sets high target and goals for themselves and respects the entire employee
group. Firm is a transactional leader and is task oriented through following the
pragmatists leadership style. This is misinterpreted that organisation might follow
democratic style of leadership but Amazon use hierarchical and autocratic style of
leadership. Staff: Amazon has large number of worker employed by company for performing their
duties. Their workers are spread across the world across entire sites of company. The
worker have determined duties and description for their worker. However, employee are
free to make amendment as per the condition and their opinions are being encouraged by
the company. Organisation has a good leave policy and effectively compensated staff
members.
 Skills: Amazon has the effective strategy to accomplish their mission i.e. to hire best and
skilled worker and keep them trained well (Florea, Cheung and Herndon, 2013). Amazon
has allotted certain roles to entire workers groups assigned as per their skills and traits.
Also each worker initially provide proper training. Amazon despite of training, organise
seminars and other programs for worker that can be attend by any employee. Amazon
organise innovative techniques and proper chain motivators for their company.
Hence, the theory can help in changing the different consequences as well as influence
the whole company's structure. Amazon can manage their structure of organisation along with
coordinating their operations through aligning same goals and purpose with whole company
leading to more revenues and better results of organisation.
TASK 2
P2 Different approaches and techniques used for attracting, maintaining, developing and
rewarding human resources
Personnel of a company is the major asset of an organisation that is required for worker
management as well as whole company employee group's administration. It is essential for a
company such as Amazon to maintain talented and skilled employee inspiring them within
certain time period for retaining them within the company. It can help enterprise in improvement
influencing the organisation in more positive manner. For this, enterprise coordinate several
different techniques and approaches in order to get longer commitment with worker and reach
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their higher productivity and revenues level. Here are mentioned some of approaches and
theories of motivation that Amazon utilise with effective plan implementation purpose to
increase dedication among human resources of Amazon worldwide:
MOTIVATION AND MOTIVATION THEORY
Motivation refer to “to move” that can be defined as the forces which assist a person or
individual in stimulation, arousing and deliver motivation to meet their motivation path. Hence,
the theory stress over the process of activation of human behaviour.
Motivation and motivation theory can be considered to the most frequent and written
evaluation that is written and understood as one of significant which present the complexity
construction. This theory does not involve one single theory but numerous models or theories
under it. Some of those theories are discussed as below:
Main Content Theories Hierarchy Need of Maslow: This theory is discovered by Abraham Maslow which
presents the human requirements as the hierarchy including psychological, self-esteem,
self-actualisation, security need etc. It is paramount requirement of an individual
psychological demand that is required to maintain for food, water and shelter and many
other survival need. Security need are also one of the major physical need consisting
stability, freedom and many other (Inyang, Awa, and Enuoh, 2011). Belonging
requirements including family, love desire, friendship supported through the sited
community. Need of self-esteem refer to the person's individual requirements. This is
indispensable to apply this theory in the working environment of Amazon as they have
large group of worker. It help in retaining worker as well as making more credible and
reliable relations between organisation and their personnel. Hygiene Motivation Theory: It was originated by Frederick Herzberg that is related with
Maslow's needs but mentioned the manner through which one can get motivated within
the workplace. This claims that motivation refer to the individual achievements and
efforts of high need level aid in stimulation beside the lower-level need fulfilment. The
manager's implementation for the sited theory is achieving lower requirement need by
wage development, security as well as other components that can aid in preventing
dissatisfaction of employee but doesn't influence the performance of worker. Amazon's
manager should aims on the intrinsic nature modification along with job enriching level
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or support extra services like skills development, improvement of brand, additional work
responsibilities etc.
Major process theories
 Expectancy Theory: It is one of the major concept of behaviour that is originated by Kurt
Lewin and Edward Tolman directly to motivation of performance. Vroom claims that the
individual only select that work which company assume worth value. The person are
willing to undertake:
◦ Instrumentality, which might lead an individual toward carrying out compensation
and outcome.
◦ Expectancy, which lead to degree enable to direct worker toward better work
performance.
◦ Valence which extent to assumed result which can be attractive and unattractive.
All of these mentioned elements assist a person in motivation and inspiration that can aid
in gaining Amazon's competency level (Florea, Cheung and Herndon, 2013). Hence,
manager should attempt the worker values and belief for increasing their values of
rewarding and effective performance. Equity Theory: This theory refer to the comparison of performance of an individual with
other authentic and relevant people. If organisation is creating more effective decision
while rewarding, this strategy can inspire worker in more effective manner. Equity in
work environment can be achieved if they are rewarded on the grounds of one's
performance which influence other individuals of Amazons as well.
HUMAN CAPITAL THEORY
Human capital can be defined as the group or individual disposition in knowledge or skill
form that reflects the education or experience of people. This theory was discovered by T.W
Schultz that have played vital role in evolution. This consist of human capital investment along
with the personal distribution of income. The human capital theory claims that the productivity
and performance of worker influenced by training through conveyance of knowledge and skills.
In brief, this theory believes that through maintaining proper training and education among
worker, retention, development and motivation among worker can be managed which has be
managed that has proven as costly investing techniques. Amazon on the other, organise proper
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training an development within their company leading to commitment and dedication of
employee for a longer period of time.
Source 2: Human capital theory, 2018
These theories can help Amazon in managing systematic administration of requirements,
information and structure of company. It involve processes, framework strategies of organisation
that can assist in achieving the refinements and sharing for employee. These are major
motivation theory which can helps in reaching their goals and targets.
TASK 3
P3 Use of contemporary knowledge to support evidence for emerging HR developments
According to the case study, numerous techniques and approaches are being evaluated for
supporting the HRM and achieving the set operational design of Amazon. This report will
required to evaluate proper research in order to support their investigation with evidence to HR
development (Goetsch and Davis, 2014). An accurate analysis of secondary data over the
mentioned problems were being analysed from previous studies of authors and scholars in order
to provide proper evidence to the report. Here are described some required data mentioned
below:
Emerging development of HR Amazon required for managing their worker of gig
employee in order to maintain smooth functioning of company. There are various trends such as
flexible workplace for gig economy, employee champion etc. Here are mentioned recent trends
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Illustration 2: Human capital theory

of HR which the company can utilise for understanding the alternating internal and external
working environment in Amazon Plc. Flexible working environment for gig economy: As per the conducted scholar findings,
it can be claimed that self-employment and flexible working are inevitable solution for
development of “gig economy” for best projects management and fluctuating the flow of
work (McDonnell, 2011). This is one of the most suitable approaches which Amazon can
employing recently for their freelancers or contract based worker through this
approaches. This can aid them in creating wider economical status for enterprise which
can help in achieving their business objectives.
 Employee champion: This data has been accumulated from another research which set
that HR should act as the champion of worker. Through prioritising worker, cultivating
an target oriented, empowered and effective communicated culture, creating programs of
employee assistance and providing proper opportunities of worker development, HR can
manage different positioning for their employee. Amazon can employ their trend in their
working environment that can assist the gig economy and freelance worker issue.
Hence, through changing and modifying the technologies and techniques within the
enterprise, company can achieve their business objectives. This can aid in building more
interactive internal and external business environment within organisation leading to effective as
well as friendly workplace. It can also assist in enlarging the company's revenues and enhancing
their productivity by accompanying the mediums of social media within their communication
system.
TASK 4
P4 Organisational design has to respond and adapt to change management and the relationship
Organisation design consist of plans and strategies that can help in company management
to manage alternation and meet their objectives in effective manner (Mir and Pinnington, 2014).
This consist of determined accountabilities, decision rights, linkages and internal governance etc.
It assist to maintain the complication as well as insured about the sustained performance.
Amazon 's structure of organisation can be categorised as hierarchical structure, The
higher authorities consist of two CEOs, 3 senior vice-president and one global controller who is
liable for the entire function operating activities along with reporting to CEI Jeff Bezos. There
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are major several classified segments such as director, chief financial officer, chief technology
officer etc.
Cause of immense business size of company, hierarchical structure developed with
Amazon. According to the report, 43% estimate online sales of retailing products is made in only
USA in year 2016 (Stredwick, 2013). The market value of company is 355.9USD billion that is
more than Target, Nordstrom, Walmart and other company's market capitalisation sum.
Source 3: Amazon Plc. organizational structure, 2018
This is indispensable to observe the flexibility of Amazon despite being more hierarchical
when it comes to design of company in comparison of other companies. Though, the online
retaining are leading to wide alternation in external environment of business which has caused e-
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Illustration 3: Amazon Plc. organizational structure

commerce disruptive innovation. Structure of company still remain dynamic as company follow
the diversification strategy.
As the company has adopted the hierarchical structure within their structure in order to
operate different operation (Unger, Gemünden and Aubry, 2012). But in condition of ethical
dilemma or issues with the recent working environment or workforce, organisation may has to
change their structure or organisation design. Here are mentioned the affected sector which is
discussed here: Alternation in Policies: Such Amazon organisational design change situation can direct
the whole company toward need of new terms and policies creation by high authorities.
The whole process is complex and can lead to more complications and resistance within
the internal working environment and management of organisation.
 Modification in Divisional Structure: As the organisational design will change,
company has to make alternation in their operational and divisional structure. It can
create imbalance in schedule of work, bad administration and many other issues.
In order to avoid these activities, this is very essential for an enterprise like Amazon to
properly manage change in order to achieve their made change in effective manner. This can
reduce the resistance and can help in building the activities as per the made alternations. Here are
mentioned some change management strategies that can be opted by enterprise:
Change management refer to the administration and development within similar business
organisation.
Kurt Lewin Theory of Change Management
This theory believes on preparation or motivation for change in order to effectively
implement the changes. This theory is based on the three steps of change management within
Amazon i.e.: Unfreeze: preparing company to accept required change. Change: In this, individual start dealing with uncertainties incurring in company.
 Refreeze: After occurrence of change, people embrace the whole activities.
Hence, Amazon can use this strategy for accepting and achieving required phases while
changing the organisational structure (Wehrmeyer ed., 2017). This also presents the outcome that
organisational structure.
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CONCLUSION
It can be state from the above discussed report that organisational design is a step-by step
procedure or techniques help in leading the organisation toward the empowerments of worker as
well as effective designs to company. There are numerous theories and models that can be opted
by 7S model etc. For enterprise improvement, there are some of approaches and theories of
motivation that Amazon can utilise with effective plan implementation such as, motivation and
motivation theory human capital theory etc. Emerging development of HR Amazon required for
managing their worker of gig employee in order to maintain smooth functioning of company.
Organisation design consist of plans and strategies that can help in company management to
manage alternation and meet their objectives in effective manner.
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REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Arrowsmith, J. and Parker, J., 2013. The meaning of ‘employee engagement’ for the values and
roles of the HRM function. The International Journal of Human Resource Management.
24(14). pp.2692-2712.
Aswathappa, K., 2013. Human resource management: Text and cases. Tata McGraw-Hill
Education.
Aubry, M. and Hobbs, B., 2011. A fresh look at the contribution of project management to
organizational performance. Project Management Journal. 42(1). pp.3-16.
Boxall, P., 2013. Mutuality in the management of human resources: assessing the quality of
alignment in employment relationships. Human Resource Management Journal. 23(1).
pp.3-17.
Berman, E. M. and et. al., 2012. Human resource management in public service: Paradoxes,
processes, and problems. Sage.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Florea, L., Cheung, Y. H. and Herndon, N. C., 2013. For all good reasons: Role of values in
organizational sustainability. Journal of Business Ethics. 114(3). pp.393-408.
Goetsch, D. L. and Davis, S. B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Inyang, B. J., Awa, H. O. and Enuoh, R. O., 2011. CSR-HRM nexus: Defining the role
engagement of the human resources professionals. International Journal of Business
and Social Science. 2(5). pp.118-126.
McDonnell, A., 2011. Still fighting the “war for talent”? Bridging the science versus practice
gap. Journal of Business and Psychology. 26(2). pp.169-173.
Mir, F.A. and Pinnington, A. H., 2014. Exploring the value of project management: linking
project management performance and project success. International journal of project
management. 32(2). pp.202-217.
Stredwick, J., 2013. An introduction to human resource management. Routledge.
Unger, B. N., Gemünden, H. G. and Aubry, M., 2012. The three roles of a project portfolio
management office: Their impact on portfolio management execution and success.
International Journal of Project Management. 30(5). pp.608-620.
Wehrmeyer, W. ed., 2017. Greening people: Human resources and environmental management.
Routledge.
Online
The Importance of Organizational Design and Structure. 2011. [Online]. Available
through:<https://hbr.org/2011/02/the-importance-of-organization>.
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