MG629: Leadership and Management Evaluation of Amazon's Performance

This report critically analyzes and evaluates the leadership and management practices within Amazon, assessing their effectiveness in relation to the company's overall performance. It begins with an introduction outlining the report's purpose and provides a brief overview of Amazon's business operations. The analysis section delves into various management and leadership theories, including Scientific Management, Theory X and Y, Behavioral Management Theory, Transformational and Transactional leadership, and Charismatic Leadership, and how they are applied within Amazon. The report then examines Amazon's key performance metrics, such as order defect rate, pre-cancellation rate, late shipment rate, and product ranking, to evaluate the company's market position and growth. Furthermore, the report discusses Amazon's use of motivational theories, such as Maslow's hierarchy of needs and Herzberg's two-factor theory, to enhance employee satisfaction and performance. Finally, the report concludes by summarizing the key findings and insights regarding Amazon's leadership and management strategies and their impact on organizational success.

Developing
Leadership and
Management skills

Executive Summary
This report will examine that both management and leadership skills is essential
for the overall development of enterprise. Theory of management and leadership bring
motivation among employee to contribute productivity among organisation. Implantation
of theories will leads towards increase in profit generation of the company. This report
provide detail analysis of leadership and management theory along with along with its
performance of company in the industry in context of leadership and management.

Table of Contents
INTRODUCTION ..............................................................................................................4
TASK..................................................................................................................................4
Detailed analysis of leadership and management theory in the company....................4
Key performance metrics of amazon in their sector/market/industry............................7
Amazon leadership and management performance.....................................................8
CONCLUSION ................................................................................................................10
REFERENCES................................................................................................................11

INTRODUCTION
The leadership and management skills create appropriate outline for an
organisation. These skills provides proper guidelines and direction to the organisation in
achieving long term goal of the company. Leadership skill is the quality of an individual
to influence and control the actions of others with organisation. It facilitate in providing
clear set pattern of vision so that each employee can push their synchronised efforts in
achieving organisational goal. They deliver clear set of knowledge or information within
organisation and provides proper guidance to the each member in the organisation. On
the other hand engagement skills also play major role in the organisation. It improve
implementation of business strategy that helps in proper execution of business process.
By improving management skills company can achieve competitive advantage by
developing high quality of goods or services. It leads towards proper training of their
employee in an enterprise. Management skills develop employee skills and ability and
provide job satisfaction to employee. It convey effective communication and brings
coordination in operations of company workforce. This aid in achieving individual goal
along with company goal to boost overall performance of entity. A manager has also an
ability to become a successful leader. The chosen organisation in this report is
amazon. It was well organised company founded by Jeff Bezos in July, 1996. It mainly
deals in the e-commerce, cloud computing, artificial intelligence etc. Both management
and leadership skills plays important role in the overall development of company. With
the effectiveness of these skills company create their own brand name in the market.
Because of its management and leadership they become one the leading enterprise in
their industry. This report provides detail comparison of leadership and management.
The purpose of this reports aim towards performance metrics of company sector,
market, industry. It also evaluate leadership and management performance of company.
Various management theories are discuss such as Scientific Management theory,
Theory X and Y, Behavioural Management Theory etc as well as leadership theories as
Transformational and Transactional leadership, Charismatic Leadership etc.

TASK
Detailed analysis of leadership and management theory in the company.
The Amazon implement both leadership and management theory in their
operations to brings effectiveness in employee performance (Tran, 2020). The
execution of these theory and styles will leads towards overall growth of the company.
Here are some some management theories that is adopted by the managers of
Amazon. Scientific Management theory- In this theory mangers of the Amazon
examine workflows to enhance skilfulness in economic activity along with productivity in
employee. Mangers of Amazon mainly divide this theory into four parts. first one is
identifying each job on rule of thumb base so that each employee identified its own way
of performing job. Manager hire best employee and train them properly. After that
inspection of employee performance and provide appropriate guidance. At end work is
diversified between employee and management so that both can deliver their task
efficiently.
Theory X and Y- This theory involves two styles authoritarian and participative
style. In the company if managers examine that employee are disliking the work then
they adopt theory X. Where as if employee enjoying their work then manager adopt
theory Y. In theory X mangers implement authoritarian style so that employee who are
disliking turns their perception and gets highly motivated towards work (Ebot-Ashu,
2019). Mangers monitor their work and control performance of employee. Where as in
theory Y manger adopt participated style so that employee who are self motivated push
their limit towards productivity of company. In this employee ensure its responsibility
willingly and highly motivated towards achieving goal. Behavioural Management
Theory- This theory is also known as movement of human relations. Through this
management theory manger of company understand human behaviour at workplace. By
understanding human behaviour of its employee company can increase its productivity
and brings motivation among employee. This theory mainly focus on individual efforts
that turns in the favour of Amazon company.
Along with management theory Amazon also adopted leadership theory at their
workplace.

Transformational and Transactional leadership- In transactional leadership
Amazon mainly focus on its business process, controlling employee performance and
provide appropriate framework in management that improves overall performance of
company where as Transformational leadership integrates communication coordination
and cooperation by encouraging employee of the Amazon. Both the leadership aids in
achieving objective of company. Transactional deals with how work is to be done, on
the other hand transformational encourage employee to push their limits (Filyasova,
2019). Leaders in transnational aim towards on goal of company and use rewards to
encourage employee. In transformation leaders aim towards achieving vision of
company. Leaders uses tool of enthusiasm to encourage employee of company.
Through transactional leadership style Amazon performing well in diversifies situation.
Leaders of company mainly shifts their strategy in innovative manner to deliver creativity
in their operations. The leaders of transformational boost confidence and morale of
employee for delivering product in more creative way. Charismatic Leadership – In
this leadership style, leaders of Amazon utilise effective communication skills,
attractiveness, power persuasive skills to influence employee of the company. With the
help of these leaders build connection among organisation so that each employee can
deliver value to the organisation in most difficult, diverse situation (Harrison, 2018). This
create positive environment in the organisation and brings collaboration in the activities
of the company. Leaders heard all then conflicts of employee and provide solution to
them to improve productivity in the Amazon.
Leadership and management both are used by Amazon to enhance
effectiveness and efficiency in its operations for overall development. Managers uses
management theories to provide proper direction to their employee. Managers support
their subordinates by using Scientific Management, Theory X and Y, Behavioural
Management Theory. These theory implement authoritarian style in their work culture.
They provide direction to their employee what type of work they gave to perform. They
are in the search of good ideas and active towards organisational change. They always
tends to be a hero in the organisation. They control their employee by deliver power in
entity. Where as leaders of Amazon always in search of asking questions within
organisation. They encourage their followers by leadership theories like

Transformational and Transactional leadership, Charismatic Leadership. They
introduce innovative and creative idea to the business operations. They always try to
bring change of company development. Leader wants to develop each employee in
effective way and generate power with employee (Henriksson, and et. al., 2020).
Leaders try to develop each employee with own self. Leadership are practice people
oriented work style in its operations, on the other hand mangers are more concern on
task oriented structure. Leaders mainly focus on achievements of company where as
mangers focus on final result oriented. Mangers and leadership style are contrasting
concept of organising employee. Leadership mainly tends towards implementation of
new vision and provide appropriate direction within company. On the other hand
management control organisation resources with certain principle values.
(Source: Management theories, 2021)
Key performance metrics of amazon in their sector/market/industry.
Every company perform different set of key performance metrics to enhance its
performance in competitive market and industry. The company execute several
Illustration 1: Management theories, (2021)

techniques to evaluate key performance matrix to improves its position in sector, market
and industry. Rate of defect order, pre cancellation rate, late shipment rate, valid track
rate, contact response time within buyer and seller and product ranking techniques used
by amazon company to analysis employee turnover, coat of operations, quality of
company, market share, growth and profit of the company (Jamieson, and et. al., 2021).
The order defect rate provides negative feedback of company with the help of this
company evaluate and modify its strategy to improves it performance. Through this
company can achieve high growth and profit rate of the company. Amazon is a leading
company that continuously increasing its market share by delivering qualitative product.
They deliver high quality of diverse products in the industry.
(Source: performance metrix, 2021)
Illustration 2: key performance metrix of amazon

Cost of operations is increase when company have to bear pre cancellation rate.
Large amount of cancellation rate leads towards increase in operations cost. They need
to improvised this to decrease their cost of operations. Late shipment rate provides
negative impact on the minds of consumer. This will impact their profitability of company
in large context. Rate of high conversion ensures that company performing well as their
goods or services is purchased by their target audience. In context of Amazon they are
delivering good quality of products and their costumer are satisfied with its services,
they are doing well in conversion rate. Valid tracking rate aids company in improving its
performance. By valid tracking rate they scanned their courier and dispatch it on time.
Essential tool of KPI is product ranking of Amazon commodities, that aims in achieving
best rank in achieving seller category (Kişi, 2021). The Employee turnover is low as
their adopting several managerial and leadership style to generate satisfaction among
employee.
Amazon leadership and management performance.
Organisation success is mainly depend on the performance and workforce
satisfaction. That is why company execute effective leadership and management
theory. Company perform Maslow's need hierarchy theory to encourage motivational
level of the company. By this motivational theory they want to fulfil physiological, safety,
love or belonging, esteem, and self-actualization needs of the company. By satisfying
these needs of employee, this will create self motivation in employee towards the
growth of the company. More satisfied employee will brings more value of organisation.
Is these needs is not fulfilled by employee then its brings negativity in the work place
and employee performance gets affected. Amazon also adopted Herzberg motivational
theory, it involves two concept that affect motivation within the organisation. One is
Motivators and second is Hygiene factors. Motivators inspired the employees to push
their limits in large context (Mayor, and et. al., 2018). On the other hand hygiene
concept also inspire employee to extend their limits. In the absence of hygiene it will
leads towards demotivation among employee. This theory will synchronised the efforts
of employee in achieving organisational goal. It combines leverage to the company to
deliver best performance with organisation. High level of hygiene leads towards low
motivation among entity where as low hygiene decrease the level of motivation.

Adopting this model boost satisfaction in job position and decrease hygiene level among
organisation. Expectancy theory is also one of the essential theory adopted by their
management to improve its performance. This theory state that performance of
employee is depend on the efforts of individual skills. These are linked with individual
own motivation. The company combines expectancy, instrumentality and valence
factors in this theory. Expectancy is the concept of enhancing effort to increase
performance. On the other hand instrumentality refers if employee will perform good
then they will achieved recognition from company. This will boost the efforts of
employee by company. In valence means positive efforts of employee leads towards
positive outcome in the organisation. Through this theory company provides rewards to
their employee in return of its contribution of work. Amazon company also perform
leadership theories to brings positive impact on company performance. One of the good
example is transformational leaderships, it mainly refers to provide inspiration and
encouragement to its followers so that they will engage in the success of company. It
aims towards both fulfilment of individual or organisational objective. This will facilitates
workforce to moves forward in large context while setting strategy formulation. This will
leads towards inspirational motivation, intellectual stimulation, idealized influence and
individualised consideration. This will contributes integration of communication among
enterprise. This is one the best leadership theory that company practice to enhance its
productivity level in the enterprise.
The enterprise also execute Hersey and Blanchard situational model in its
leadership style that aim on creating quality and willingness of particular employee. It
also known as situational leadership model. This facilitates innovative and uniqueness
in the working environment. By examine skills and experience of employee company,
leaders can implement leadership style to motivate professionalism in the employee. It
will integrate communication level to encourage performance of the employee. Under
Hersey and Blanchard situational model leadership is diversified into directing,
coaching, participating and delegating. Directing involves in delivering appropriate
direction of employee. In early stage followers have not that muck skills to perform well
towards growth of the company. With this concept leaders develop employee skills and
deliver clear set of vision and direction for the fulfilment of long term goal of enterprise.

Coaching refers to delivering direction along with personal support. With the help of this
leaders develop self confidence skills of their followers. Support of leaders will brings
the level of effectiveness and efficiency within the performance of company. In
participating concept leaders focus on supporting and engagement of employee in
business process rather than providing direction (Pidgeon, 2017). They must execute
feedback and encourage employee to motivate in contributing overall development of
employee. While in delegation leaders provide minimum direction and support because
their followers can perform their work on their own. These all four concept help the
company to maintain efficiency level in their performance. The effective management
and leadership skills involves several theory for the better performance of the company.
The entity utilise theses styles for improving performance of employee and brings
competitive advantage within organisation (Thornton, 2018). The positive impact of
these theory will leads towards improvement of employee turnover rate, job satisfaction,
cost of operations, qualitative product, share market, growth and profit of the company.
Positive environment increase the level of productivity in company. The survival of
company mainly depend on the management and leaders. It aids in setting objective as
well as contributes in achieving long term goal of company (Totterman, 2021). This will
leads towards innovative factor and brings creative idea in the organisation. This boost
personal development along with organisation.
CONCLUSION
From the above report it has been concluded that management and leadership
skills are two diversified concept and both are essential to boost the employee
performance of Amazon. Implementation of management and leadership skills leads
towards productivity in the organisation. This will help Amazon to build brand image in
the perception of consumer. To bring effectiveness in their operations of company. The
role of leadership and management might work in various segments of abilities and
sense of knowledge for the development of an business of management. Leadership is
termed as nil if the structure of the business is not get built as accordingly to the system
of management is not get encouraged the work of leadership. Leadership and
management are both the same and can be different at the same time. The leaders and
the executives perform their role to motivates the individuals to get the more productivity

as effectively. The leadership is the quality to control a unit of an individuals in realising
their average objectives. It is done by individuals for applying their leadership concept in
the management. Management is the process of manage all organisational functions
effective manner in order to achieve defined goals and objectives. On the other hand
leadership is related to lead, guide, inspire and motivated employees to perform their
assign task in effective as well as efficient manner. Organisation use various theories to
motivate employees to get high performance level. These theories includes Maslow
hierarchical need theory, vroom expectancy theory , transactional and trans formal
theory that motivates employees to complete their task in effective manner. Managers
and leaders of Amazon perform these task and manage all human resource efforts
towards achievement of organisational goals. Monetary as well non monetary rewards
are provided to employees of Amazon so they perform their work in appropriate
manner.

REFERENCES
Books and Journals
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AND LEADERSHIP QUALITIES.Информация–Коммуникация–
Общество,1.pp.372-377.
Harrison, C., Burnard, K. and Paul, S., 2018. Entrepreneurial leadership in a developing
economy: a skill-based analysis. Journal of Small Business and Enterprise
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Henriksson.M. and et. al. 2020. 135 Leadership during the covid-19 crisis: How did we
do and how can we do better?.
Jamieson.M. and et. al. 2021. Sustainable leadership and management of complex
engineering systems: A team based structured case study approach. Education
for Chemical Engineers,35.pp.37-46.
Kişi, N., 2021. Developing Leadership Talent for Success in the Fourth Industrial
Revolution. In Future of Work, Work-Family Satisfaction, and Employee Well-
Being in the Fourth Industrial Revolution(pp. 53-68). IGI Global.
Mayor.P. and et. al. 2018, June. Teaching and learning leadership skills online:
Experiences of developing leadership skills in a blended learning educational
leadership programme. InEdMedia+ Innovate Learning(pp. 1903-1908).
Association for the Advancement of Computing in Education (AACE).
Pidgeon, K., 2017. The keys for success: Leadership core competencies. Journal of
Trauma Nursing| JTN,24(6).pp.338-341.
Thornton, A. and Bradley, A.C., 2018, December. Preparing a Manageable Community:
Interdisciplinary, Collaborative Training through Early Career Leadership and
Community Development in Polar Sciences. In AGU Fall Meeting Abstracts(Vol.
2018.pp. PA23F-1047).
Totterman, H. and von Briesen, J., 2021. Higher Ed Through Grad Consulting:
Developing Leadership Skills by Negotiating and Delivering Paid Client
Assignments. In Integration and Application of Business Graduate and Business
Leader Competency-Models (pp. 122-141). IGI Global.
Tran, L.T. and Nghia, T.L.H., 2020. Leadership in international education: leaders’
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Online
Management theories.2021.[Online]Available
through:<https://corporatefinanceinstitute.com/resources/careers/soft-skills/
management-theories/>