Strategic HRM: Applying Kotter's Model to Solve Amazon's Key Issues

This report provides an overview of Amazon's Human Resource Management (HRM) practices and identifies key challenges such as product returns, refunds, packaging issues, and price competition. It diagnoses these problems and proposes solutions using Kotter's eight-step change model. The model includes creating a sense of urgency, forming a guiding coalition, developing a vision and strategy, communicating the vision, empowering broad-based action, generating short-term wins, consolidating gains and producing more change, and anchoring new approaches in the culture. The report concludes that by implementing Kotter's model, Amazon can effectively address its challenges and improve its overall HRM practices, reduce waste from packaging, and streamline the return and refund process.

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Contents
Introduction...........................................................................................................................................2
Company’s overview.............................................................................................................................2
Diagnosis...............................................................................................................................................3
Kotter’s eight step approach..................................................................................................................5
Conclusion.............................................................................................................................................9
References...........................................................................................................................................10

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Introduction
Human Resource Management (HRM) is the process for the effective management of people
in the organization. It comprises hiring and evolving employees in order to create value of the
organization. The aim of the HRM is to enhance the productivity by augmenting the
effectiveness of the employees. I have been working in Amazon from last three years and
confronted some challenges in the company. The problematic areas recognised are refunds
and product returns regarding packing and price competition. The refunds and returns are
shortcoming for Amazon. It has been experienced that the customers prefer to return the
products as soon as they are not in the need of it. On the other side, price competition is also
one of the causes of product returns. If the customers get the same products for the less prices
on other retailer ‘site then customers are expected to return the goods and make purchase
from that website. On the other hand, sometimes company do not pack the items properly as a
result product can be damaged. The customers return the products as soon as they get the
damaged products. This report includes the overview of Amazon. The product refunds and
returns are the problems which are diagnosed in Amazon. Such problems are also
accompanied with the packing problems and price opposition. Kotter’s 8 step approach is
implemented to solve the issues diagnosed in the company. this approach identifies the need
for change and transforming the organization.
Company’s overview
Amazon is a leading online retailer worldwide. The company was initially a book seller but
enhanced operations later to a huge collection consumer goods and digital media. The
website of Amazon is popularly known to have wide variety. The mission of the company is
to become globe’s most customer-centric company (Mason, Cogua & Thompson, 2018). The
consumer goods make available by Amazon comprises electronics, furniture, music, apparel

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and more. The customers can buy and sell products on the online market system of Amazon.
It has distinct sites, software advancement centres, customer service centres and
accomplishment centres in the different locations globally.
Amazon has gained popularity over time accompanied by ultimate productivity. Amazon has
demonstrated itself by proposing add on services time on time like Amazon Web Services
(AWS). Amazon even enlarged AWS portfolio in 2006 through Elastic Compute Cloud
(EC2). This service lets out the computer handling power in minor or huge augmentations.
Amazon is magnificently directing its operations but these are accompanied by the certain
problems (Jabbour & de Sousa Jabbour, 2016).
Amazon is the leading e-commerce retailer and cloud computing platform globally. It has
distinct retail websites in different nations (Mazrekaj, Shabani & Sejdiu, 2016). The company
even provides worldwide delivery for the specific products in certain countries. Amazon has
beaten Walmart as a most appreciated trader in United States. The company supports small to
medium size businesses in order to reach millions of clients with the different platforms. It
assists to enhance profits, scope and efficiency of the organization.
Diagnosis
The core business practices of Amazon contribute to better functioning. The business
decisions of Amazon are taken on the basis of the “flywheel “philosophy. It comprises a
cycle in which Amazon cuts prices to appeal customers. It is helpful in attracting more
customers and increasing sales. Amazon is diagnosed with some issues discussed below:
Product returns and refunds
The customers generally view the return policies before taking any purchase decision.
Amazon has attained higher chances of buying due to the facility of easy returns provided by

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the company. The customers return the products in the case if it does not match the
expectations of the customers, the customers are in no need of products or when they are
damaged. It is the downfall for the company and has to bear the burden of shipping and
picking up costs several times (Lane, et al. 2015). These are the unnecessary expenses for the
Amazon and reduce the profits. If the multiple returns take place then it puts negative impact
on the image of the company. Amazon faces need of updating its collection on the regular
basis and adds the return articles to match its inventory.
Packaging
The company is condemned for reprocessing of the packing boxes. Moreover reprocessing of
the boxes has created a sustainability concern for Amazon. The packaging leads to the huge
cost to Amazon as it has to pack each and every item in the boxes. A lot of money of the
company goes to scrap just because of the packaging. Amazon even double packs the
products to safeguard them (Delery & Roumpi, 2017). It is because products can be damaged if
these are not packed properly. Amazon is likely to initiate the returns if considered that the
product was already damaged before it was delivered to the customers. The products are also
returned by the customers when the wrong products are shipped to them. The plastic utilised
in the packaging also causes augmented carbon emissions (Horak, 2017).
Price competition
The intense competition in the market causes differentiated prices for the same items across
different online dealers. The company is influenced by the modest pricing because it cannot
manage to fall product prices maintaining to the small profit margins. It greatly distresses the
probabilities of obtaining a buy box spot. Amazon has to decrease its prices to increase sales.
Add on, the discounts are also offered on the special occasions. If the company sustains on
the regular basis from lower pricing then it can hugely distress to the profits (Zhu & Liu,

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2018). The competitor’s pricing is the cause customers return the products as soon as they
can acquire the same products at less prices at other retailer’s website. The clients are first
prejudiced by the prices of the company, quality comes later.
Kotter’s eight step approach
Dr. Kotter has identified the success aspects and shared them in the eight step procedure for
leading change. This approach is helpful in improving the ability of the organization and
successful factors.

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Create a sense of urgency
This is the initial phase to be taken by the leaders to form an intellect of urgency. It is the
arrangement of activities to be undertaken by the leaders to interact with the stakeholders that
why changes are required and when it should take place (Small, et al. 2016). There are some
potential threats which are faced by Amazon like price competition, packing and problems
confronted in refunds and returns. The company is necessitated to undertake such issues and
create a sense of urgency. Amazon can gain support from the employees by making them
aware of the issues to be faced in the organization. The employees should be encouraged so
that they can make contribution towards tacking problems. It can be possible by involving
employees in the deciding solution for the problems (Appelbaum, et al. 2012).
Creating guiding association
Another phase identified is creating a supervisory association. It comprises the activities
which can be undertaken by Amazon to recognize skilled, significant and severe associations
to become change omission team. This step has role in convincing people to consider that
change is necessary (Page & Schoder, 2018). It undertakes strong leadership and evident
support from the main persons of the company. Initiating change is not sufficient but it is
required to be maintained. The key persons should come together in Amazon to bring change
as the power of such persons comes from the several sources. It includes status, capability
and job specialists. The specialist staff of Amazon can be motivated to exert on team
enhancement within the amendment association. They can even detect the pathetic areas and
make sure that the problem is elucidated in the finest way probable (Reddeman, et al. 2016).

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Create a vision for change and strategy
It is the third step for Amazon to develop vision for change and strategy. These values have
role for a change. This step comprises a sequence of activities which offer the company a
portrait of the future after executing change. The actions describe the vision to be attained
within the granted time frame. These are the practical actions that cooperate in the coming
years to be pleasing and functional. The thoughts of the organizational members can be
assimilated into the vision (Wheeler & Holmes, 2017). The organizational members exert a
lot to endure the organizational obligation towards modification.
Communicate the change vision
Amazon can take 4th step to discuss the change vision. These are the number of activities to
communicate the change vision extensively to the company to encourage organizational
obligation headed for a new trend. Amazon can initiate this step to understand the mind frame
of the staff who are required to implement the change (Pinelli, et al. 2016). The
organization’s vision can be linked with the vital aspects such as performance appraisals,
training and more. The vision is required to be effectively embraced in the organization. The
mangers in Amazon should find out the need for change to transform strategy.
Empower based action
The 5th step recognized in the Kotter’s approach is permitting wide based action. The steps
comprised in this approach removes complications which do not assist the change vision. The
leaders amend the changes in the prevailing infrastructure of the organization. It assists the
goals of change effort (Kohnke, 2017). The proactive actions are executed in this approach to

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eradicate the interruptions comprised in the procedure of change. The employees assisting
company for recommending changes like product returns, packing, price competition and
reimbursements are reinforced.
Generate short term wins
It is the 6th step in the Kotter’s approach is to create short term successes. Such are the
number of activities to sustain change energy over the long period by forming goodwill. It
can be made possible through the visible short term wins of the organization. This step is
helpful to the company in deciding a success of taste in the minimum period like by
executing eco-friendly packing and instant refund system (Hornstein, 2015). It ensures to
Amazon to lead in the retail industry within the short term era. These objectives can be
attained by the company with the little scope of failure. The win generated by the company
can encourage the entire organization.
Consolidate gains and implement more change
It is the 7th step to link expansions and execute further transformation. These are the number
of steps to be initiated by Amazon to avert acquiescence for change. The launch of the
innovative products assists to the working of innovative system in the company (Amini, et al.
2016). Amazon has initiated for the green packaging after the unveiling of the frustration free
packaging. The green packaging is made possible by the reused contents. Amazon has even
initiate modification by linking Sustainability Packaging Coalition (SPC). This initiative is
dedicated to the ecological vision for the packing.
Anchor change in the culture

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This is the ultimate step to present change in the culture. This final step is taken to implement
changes in Amazon to certify that change efforts become predictable in the company’s
procedure, standards and morals. The variations initiated in Amazon regarding packing,
returns, refund system and modest markets are the eternal measure of the culture. Amazon is
capable of reducing scrap generated from packaging with the help of Kotter’s approach. It
can even simplify the return and refund process (Albrecht, et al. 2015).
Conclusion
Amazon is successfully managing its online shopping website. It is a leading retail company
worldwide. Amazon is identified for the wide collection of the products. It is a robust online
business; still the company faces some problems. It is true that success is the efforts caused
by the failure. Amazon has been diagnosed with the problem such as refunds and product
returns. This difficulty is convoyed by the packing concerns and price competition.
Kotter’s 8 step approach comprises of the initial step of creating a sense of urgency. This step
views that the need for change converses the significance of taking actions immediately. The
company is guided to associate and create a vision for a change. The company has initiated a
footstep to confront the modify vision as a measure of the procedure. The extensive actions
are supported by the company to assist variations taking place in the company. The initiative
of green packaging has been taken by Amazon to gain short term wins.
Amazon has taken measures to shorten the process of refunds. The associated improvements
and more variations are executed by originating additional modifications in the packaging
like frustration free packaging. At last, anchor deviations are made in the company by
minimizing the quantity of scrap of packing and by simplifying the refund and return
procedure. These changes can positively transform Amazon.

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References
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