A Comprehensive Analysis of Leadership Skills at Amazon.com, Inc.

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This essay provides an in-depth analysis of leadership skills at Amazon.com, Inc., examining the company's leadership styles, change management strategies, and overall organizational culture. It highlights Jeff Bezos' transformational leadership and explores how Amazon's leaders have navigated changes in the online shopping landscape. The essay also discusses the importance of employee involvement in overcoming barriers to change and the ethical considerations in Amazon's leadership practices. It further examines how the organization maintains its vision, promotes innovation, and ensures customer satisfaction through strategic leadership and a customer-centric approach. The document emphasizes how Amazon's leadership fosters trust, ethical behavior, and effective conflict resolution.
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Running head: Leadership Skills
LEADERSHIP SKILLS
Name
Institution
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Leadership Skills 2
Executive Summary
Global organizations require leaders who can drive such organization’s core business on
an international scale. Real leadership invention isn’t about coming up with something new or
bright. It could be improving on the wisdom that others forget in rushing to novelty. Leaders
needed to make decisions across cultures are to make decisions in environments that seem
ambiguous. This paper looks into the leadership at Amazon.com, Inc. It also analyses the
leadership roles in implementing change within the organization. Leadership styles and tactics
they utilize to overcome barriers to change in their organizations.
Introduction
Amazon.com, Inc. is a company that deals in electronic business and cloud computing. It
was founded in July 1994 by Jeff Bezos. The company is based in The USA, Seatale,
Washington DC. Amazon is a tech giant and by market capitalization and revenue, it is the top
internet retailer and in terms of overall sales, it is second with Alibaba toping. It’s online website
started as a bookstore but currently it has been diversifie to selling electronics, furniture,
jewellery, food stuffs, audio, video and sofwares etc. Under its brand Amazon basics, it also
deals in products that are low-ends. By the end of 2014, the online shopping company had 566,
000 employees. According to Carr (2017), mission statements should push organizations/
companies to accomplish their desired success in business. The business success is accredited to
the mission and vision statements. Its mission statement and vision is “to be earth's most
customer-centric company; to build a place where people can come to find and discover anything
they might want to buy online.” An organization’s success should be contributed to their resolute
obligation and consistent execution of their mission and vision.
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Leadership Skills 3
An organizations value guides the organization actions and their perspectives and in turn
guides and aids in describing its culture and beliefs (Jagelman, 2005). Values assist in
confronting issues or problems. Amazon’s have values which also double up as their principles.
These include; “Customer obsession, Ownership, Hire and develop the best, Think big, Invent
and simplify, Frugality, Bias for action, Dive deep, Vocal self-critical, Insist on the highest
standards, ackbone and Deliver Results.” Through putting down values, Amazon lays out its
various expectations for its members.
Organisations culture are the organizations underlying values, beliefs and assumptions
that contributes to their distinct psychological and social work environment (Ovide, 2018).
Amazon has pride in its organization having a reputation of working hard. According to DuBrin
et. al, (2005), notes that Amazon has a culture that works incredibly hard. Their expectations
and standards are described from their phrase ‘unreasonably high’.
Change Initiative
Change in businesses or organizations advances through little and imperceptible
movement. Carr (2017) notes that in firms is normally in nature, change is evolutionary until it
reaches a crisis moment that results into a paradigm shift. It is sometimes vital to push the
evolutionary process to be able to go for extra rapid change. Change in dysfunctional cultures is
an uphill task since its is not easily accepted and that’s where good leadership should be
incorporated.
Organizations that have their leaders adjust to environmental change at the end survive
and flourish just like Amazon.com, Inc. The leaders at Amazon have been in a position to change
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Leadership Skills 4
online shopping models due to change in competition and business environment. The leaders at
the organization jolted the process of evolutionary change. Ovide (2017) asserts that change is a
toll for adjusting to survival. Amazon launched as in 1994 as a model for selling books, through
their leaders the company took an approach and identified their customers needs. They worked in
a backward manner to to employ new ways to distribute their products and services.Such
changes philosophy was based on listening to their customers will lead to failure and not
listening will achieve similar results.
To respond to changing environment, the company founded a strategy of selling their
merchandize over the internet through external networks. They intern converted their
competitors into partners who have aided them increasing their customer base via extended
product lines Carr (2017). The change for Amazon seemed easy and was aided by a number of
factors which include the organization’s culture being open to change and the online shopping
model was radical. For amazon, the market have responded kindly. To achieve results to nge
initiative, the organization’s leaders need to manage employee responses, sell change right and
use emotional contagion Ovide (2017).
Leadership styles and philosophies
Jeff Bezo the founder of Amazon.com, Inc relevance in business has been forged through
his transformational leadership. Transformational leadership entails instigating change in
organizations or firms or businesses, oneself and others (Yi-Feng, 2011). Such leaders always
motivate others to go an extra mile than they intended and thought was possible. Such leaders set
expectations that are challenging but accomplish a higher performance at the end. Bezo’s
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Leadership Skills 5
leadership is believed to have followers who are satisfied and committed because such leaders
majorly empower their followers.
Through Amazon’s growth it is evident that the leader have abilities of inspiring,
envisioning and innovating. The three metrics of transformational leaders are, core repositioning,
financial performance and net growth (Miska & Mendenhall, 2018). Through core repositioning,
organizations in new growth businesses. Amazon has been able to increase its platforms in retails
into new categories such as streaming content and food. In net growth, it has been fruitful in
creating new products, services and business models. Through financial performance, it has
improved its profit growth.
At Amazon apart from transformational leadership, other leadership styles are depicted
especially from the founder Jeff Bezo. Autocratic leadership is portrayed since in most cases the
founder monitors different operations/ activities on his own. Autocratic leadership is focused on
the boss who holds all authority and responsibility according to (Bryant, 2017). He also posses
strategic leadership as he has delivered exceptional strategies that has made the business to be
successful. Team leadership style is also painted because he is in a position to give direction and
purpose for the business. Team leadership entailed in the organization’s vision that provides a
vivid sense of purpose plus direction.
Leadership styles and traits
Being a leader in todays fast-paced business world and workplace have extra demands. It
entails working with varied teams at times from different locations and time zones. Ospina
(2017) points out that, while there are numerous leadership styles, those who are best share
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Leadership Skills 6
common traits. Organizations that have proved to be sustainable and successful have their leader
having traits of a successful and powerful leader.
At Amazon the key leader Bezo posseses a number of leadership traits. Innovative mind
is one of them in that he has been capable of developing a largely renowned e-commerce
website. Bezo’s innovative skills has proved that he is angry of always developing new things
like Kindle an E-book device. Gyanchandani (2017) points out that leaders must encourage
creativity through encouraging risk experimentation. The leader is also strategically patient but
also defensively impatient which is seen in the organizations vision and through the phases the
organization has undergone from startup to the current state. Building a team is an effective trait
where by the leader admits that it is challenging to invent in the absence of underlying tools.
Leaders effectiveness in attending to tasks and relationships
Businesses that have been successful have had their leaders having leadership traits of
successful and influential leaders. There is also discussion on leadership in the organization
creating and maintaining their vision, and their effectiveness in managing conducive
environment during the change process. Accomplishing success at the organization, the leaders
highlighted how to use suitable tools and techniques to flourish. Human skills enable the use of
knowledge and ability to work with various individuals and being aware of their perspectives to
accomplish organization’s vision.
Promoting teamwork is vital to achieving organizational goals, effective communication
and nurturing innovation. Perserverance through adversities is a trait that leaders at Amazon
posses due to commitment to the organization’s vision. The organization has faced challenges
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Leadership Skills 7
and their coonvictions have shown to be great e.g. Bezo noted that he had lost billions of dollar
sin projects that failed. Bezo is a risk taker in that through making up his mind to start Amazon,
he didn’t have sufficient funds and new that there were chances of failing but he persevered and
today the organization is among the most successful businesses. Jackson (2017) denotes that best
leaders not only are risk takers and have confidence and when challenged, their possibility of
giving in is close to impossible.
Leaders capacity in creating and maintaining vision
Leaders who come up with the organizations vision always exhibit qualities that make
them have the capability of creating and communicating the vision. Vision created should be
inclusive to be able to unify their customers. Amazon’s vision is inclusive in that it targets
building platform where its customers find or discover what they need online. The leaders were
also able to create a vision that has clarity. Making visions that are easily understood is
significant in promoting the organization’s brand which reflects in it’s success.
Having a clear vision for the future in a business, distinguishing and being able to take
advantage of market opportunities and establishing strong leadership enables it to be upheld
(Hoch, 203). Companies that have been successful have had their success attributed to
innovation and upholding their vision. At Amazon, the leadership has been capable of
maintaining the organization’s vision in a number of ways. The company focuses on their
customers through innovation and thinking big and that’s where there effort is placed. Through
stating that they are customer centric indicated that their main focus are their customers through
solving customers problems and meeting their need. Cooper, Nieberding and Wanek (2013)
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Leadership Skills 8
demote that the better an organization,s customer service, the better the sales through customer
loyalty. The company through their vision build their cutomer’s an electronic soulmate on their
goal of tailored product recommendations.
Maintenance of trust, confidence, ethical and legal behaviours
Transformational leadership depicted at Amazon entails transformational leadership
principles such as motivation, determination, mobilization, innovation and facilitation. In
amazon’s innovations since its foundation has been consistent due to trust that they incorporate
in their innovations. Confidence must go on par with risk during innovations which involves a lot
of experimenting (Bligh, Pearce, and Kohles, 2006). Transformational leadership metrics such as
net growth and core repositioning as noted by Jung and Valero (2015), requires ethics and trust
for the metrics to be visible. Amazon has enjoyed the fruits of success through its evolution,
which has been due to its strategic leadership style. The exclusive strategies are attained through
their employees having trust in their employer. Their customers develop confidence in the
products due to the strategic leadership employed. Through strategic leadership, the organization
has a policy against discrimination and harassment. Amazon provides equal opportunities in all
employment aspects and doesn’t allow harassment or discrimination of its employees. Such
organizations conducts entails ethics which are achieved through proper leadership. Amazon also
posses autocratic leadership where most decisions are made at the top leadership, Amazon
acquired Whole foods. This brought it into an interesting problem in the USA antitrust law. It
portrays both legal and ethical conducts in its leadership styles.
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Leadership Skills 9
Strategies used to deal with conflicts or barriers
While change is inevitable, various organizations handle it differently and institutions
that involves one person, barriers to change normally arise. The organisation’s employees will
act differently to change as some are enthusiastic and will embrace it, others are fearful and most
likely will resist (Suk Bong, Kihwan & Seung-Wan, 2017). Employee involvement is significant
in dealing with barriers to change. It should also include employee den making in order to make
them feel valued and have possession in the change result. It is a method that averts too much
feedback after change which might cause paralysis. Excellent leadership is required I handling
change. Avolio (2014) asserts that excellent leadership on how to execute plans appropriately
and good leaders provide focus and motivate for the change. Effective communication also
prevent change barriers. It assists in initiating acceptance among the employees and customers.
As much as employees need to know bout the change, they also should be aware of its effects.
The organization can ensure that their processes aren’t complex to make planning and
implementation processes easier. Organizatinion complexity can be broken by utilizing a highly
effective, quality and diligent change and project management approach. Working in small doses
aids in managing change barriers because it doesn’t overload employees with instant changes. It
makes them focus on easy and digestable chunks knowing that more is on the way.
Conflict arises in organization due to change and it is inevitable and in most cases
employees or customers are never prepared to handle it. It takes careful strategies to ensure that
the impact is not felt or barred completely. Conflicts can easily be dealt with by getting to its root
issue, considering all, the parties that are involved and having those involved create a resolution
protocol. Handling one issue at a time, timing the conflict and avoiding it also is important.
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Leadership Skills 10
Leaders effectiveness in establishing and maintaining a constructive climate through
change process
Taking market leadership risks creates conducive environment for the change process. It
is in this line that it took Amazon.com, Inc to get its core business transactions from where it was
to its current status. At first the company tried Amazon auctions, it then changed to zShops and
finally to Amazon Market place. Kohn and O’Connel (2007) denotes that invention and failure
can’t be separated and invention involves experimentation which entails taking risks and good
leadership. When employees are made to think like the business owners, then it creates a
motivating climate in the work environment. Amazon’s leadership has been able to attract and
retain employees who are motivated and its bonuses and profit sharing enable workers contribute
in the company’s success.
The leadership at the organization has created a culture that is right for the company. The
organization never claims hat an approach that they come up with is theirs. A company must not
be about a set of goals, but be able to decide on what matters or projects are important be able to
repeat them. They should also ensure that employees and customers buys in the important
projects or matters. Leaders avoiding bureaucracy create conducive environment through change
by empowering people.Comtinuous empowerment results into averting bureaucracy as pointed
out by Cole (2012), and to keep innovating, power should be pushed down in the organization.
Conclusion
Amazon.com, Inc leadership has brought it great success through online shopping idea.
Through their leadership skills, the leaders at the organization have used their knowledge and
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Leadership Skills 11
competencies to achieve the organization’s vision. Amazon’s founder Bezo over the years have
been able to understand their customers needs. It’s with the understanding the top leadership that
it has been in a position to transform the organization to focus on its customers needs. Success at
the company is attributed to essential leadership skills which include technical kills,conceptual
skills and human kills. Bezos clearly highlighted how to use suitable tools and techniques to
flourish. Human skills enable use of knowledge and ability to work with various individuals and
being aware of their perspectives. Most of the leaders skills were ability to use concepts and
skills to work that are key in creating a strategic plan and vision for the organization. The
leadership from the organization have high expectation from their employees. This has created a
more so efficient machine that is capable of making same day deliveries across USA and other
parts of the globe. The leadership has a belief that customer is the king making them to centre
they focus on what their customers need or what they aren’t in need of. It is important to note
that , effective leaders impact their business effectiveness by inspiring and motivating their
workforce. Employees who are loyal and committed expect provision of clear vision from their
leadership.
References
Avolio, B. J. (2014). Examining leadership and organizational behavior across the boundaries of
science. Consulting Psychology Journal: Practice And Research, 66(4), 288-292.
doi:10.1037/cpb0000017
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Leadership Skills 12
Bligh, M. C., Pearce, C. L., & Kohles, J. C. (2006). The importance of self- and shared
leadership in team based knowledge work: A meso-level model of leadership dynamics.
Journal of Managerial Psychology, 21, 296–318.
Bryant, A. (2017). The Business of Leadership. Camping Magazine, 90(1), 30-33.
Carr, A. (2017). The Future Of Retail In The Age Of Amazon. Fast Company, (221), 94-114.
Cole, L. (2012). Management: Theory and practice (5e). NSW, Australia. Pearson Australia.
Cooper, S. E., Nieberding, A. O., & Wanek, R. A. (2013). Successfully restructuring an
executive leadership team: A case study in change management. Consulting Psychology
Journal: Practice And Research, 65(2), 164-175. doi:10.1037/a0033610
DuBrin, A.J, Dalglish, C., Miller, P. (2005) leadership: Secoond Asia Pacific Edition. QLD. John
Wiley & Sons Australia, Ltd.
Gyanchandani, R. (2017). The Effect of Transformational Leadership Style on Team
Performance in IT Sector. IUP Journal Of Soft Skills, 11(3), 29-44.
Hoch, J. E. (2013). Shared leadership and innovation: The role of vertical leadership and
employee integrity. Journal of Business and Psychology, 28, 159–174.
Jackson, T. (2017). Review of Becoming a strategic leader. The Psychologist-Manager
Journal, 20(4), 288-294. doi:10.1037/mgr0000062
Jagelman, I. (2005). The L factor: Identifying and developing Christian leaders. Cambridge.
Open Book Publishers.
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