Ethical Dilemma at Amazon: Management Theories and Practices Analysis

This report examines the ethical dilemma faced by Amazon, focusing on the application of management theories and their impact on employee treatment. It explores the company's use of scientific and bureaucratic management practices, highlighting the tension between productivity and employee welfare. The analysis delves into the ethical implications of Amazon's practices, including long working hours and a competitive work environment, and evaluates the influence of ethical theories, such as virtue ethics. The report critically assesses the consequences of these practices on the workforce, examining issues of employee discontent, retention rates, and the overall ethical standing of the organization. It references academic sources to support its claims and provides a comprehensive overview of the complexities surrounding Amazon's management strategies and their ethical ramifications.

Running head: MANAGEMENT THEORY AND PRACTICES
MANAGEMENT THEORY AND PRACTICES
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1. Introduction to the dilemma faced by the organization
The growth of the companies is based on the sustainable attitude they have towards their
functioning and the management of their chief resources. However, at times, the companies fail
to undertake the humanitarian approach that is being imposed by the corporate responsibilities
for their quick growth and expansion in the international markets (Hill, Jones & Schilling,
2014). One of such companies that are being addressed in the report, Amazon, undertakes their
functions in a manner through which the company faces an ethical dilemma. The company is
reported several times for mistreating the employees and thereby assign them with functions with
a poor providence of remuneration. The most essential elements of the dilemma is based on the
theories and the practices that are being undertaken by the organization for its growth in the
markets. The application of the Darwinian philosophy for its growth and evolution has helped in
undertaking steps for the steady rise in the growth of the organization in the market.
The report enumerates the theories and the application of the same on the organizational
framework for bringing out the desired results in the market situation of the organization. On the
other hand, the company’s disregard for the ethics is again another factor that must be considered
while evaluating the success of the organization in the market scenario. The report aims at
discussing the different factors of the theories of bureaucratic management and the contingency
theory. On the other hand, the application of the neo-classical management theory and its
application in the structure of the organization will help in bringing forth the changes in the
proceedings of the organization in the market.

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2. Application of theoretical contexts for understanding of the dilemma faced by the
concerned company
The Scientific management practices undertaken by the organization, Amazon, help in
determining the enhancement of the productivity of the organization in the market. However, it
restricts the functioning of the organization in a sustainable manner depending on the needs and
the requirements of the human resource. The processes undertaken y the company is being
criticized in various media articles, which clearly stated their crude attitude towards the
workforce. The most important consideration that is being undertaken by the organization are
based on the fulfilment of the organizational objectives through the efficient functioning of the
workforce. On the other hand, the company has taken steps to improve their productivity through
the proper implementation of the Bureaucratic theory, which stated the specialization of the
functions of the departments, and the division of the work based on the specialization. It has
helped the organization in making a significant improvement in the situation of the company in
the market. According to a report, two segments of the customers are required to be considered
by the company while implementing the strategies of management. The first section, which is a
very small portion of the segment, understands the value of the sustainable approach of the
organization and values it (Myers, 2013). The second group, which is large in its size, cares little
about the sustainability and focuses more on the services. The application of the theories in the
management of the organization has undoubtedly helped the organization to bring in differences
in the situation of the organization in the market. On the other hand, the attitude of the company
towards the workforce is an evidence of the cruelty imposed by the company on its workforce.
The basic considerations that are being undertaken by the organization are based on the
enhancement of the productivity of the organization. it has helped the organization in

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undertaking its growth and expansion in the market. On the other hand, from an ethical point of
view, the organization has created a negative impact on the workforce through the decisions
taken by the management for the expansion of the working hours of the human resource. The
organization has undertaken the Modern theories of management for the proper management of
their organization (Peteraf, Gamble & Thompson, 2014). The modern theories have helped the
organization in understanding the different aspects of the change that is required by the company
for bringing in improvements in the structure resulting to its expansion. However, the modern
theory has outnumbered the clauses of the neo-classical theories of management, which was
workforce centric (Easterby-Smith, Thorpe & Jackson, 2012). The application of the theory on
the processes undertaken by the organization has helped in undertaking steps that are required by
the organization for enhancing their functions in the market. On the other hand, the ethics of the
management based on the understanding of the needs of the employees and the maintenance of
the culture is an important consideration that is required to be undertaken by the organization.
According to the requirements of the report, the concerned company has made use of the
scientific management practices for undertaking an increase in the productivity of the
organization in the market (Brown & Forster, 2013). The company has taken steps to improve
the productivity of the same through the induction of the policies based on the smooth
functioning of the human resource of the organization. The exploitation of the workforce through
the pressurized production has affected the workforce greatly (Trevino & Nelson, 2016). The
scientific theory of management inhibits the functions of the management relating to the increase
in the productivity disregarding the welfare of the employees. The quantitative measures taken
by the company are based on the requirement of the company to enhance its productivity in the
market. On the other hand, the pressurization on the maintenance of the quantity has affected the

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quality of the services that are being provided by the workforce. It has affected the progress of
the company in the market.
The administrative management theory is also being adopted by the organization in
order to increase the efficiency of the functioning of the workforce. It has helped in the
understanding of the different aspects of the change that is being undertaken by the organization
for bringing in improvements in its structure and market situation. The combined action of the
administrative and the scientific management has helped the organization in bringing forth
improvements in the situation of the organization in the market (Schaubroeck et al., 2012). On
the other hand, the company has compromised on the understanding of the different needs of the
workforce, which has affected the smooth functioning of the organization. The management has
taken steps and decisions in order to undertake steps in order to enhance the competition in the
workforce (Chun et al., 2013). It has greatly affected the morale of the individuals and thereby
affects the integration of the workforce. Moreover, the authoritative leadership that is being
undertaken by the management of the organization has reduced the scope of entertaining the
needs and the requirements of the workforce thereby creating a major impact on the retention
rate of the workforce. According to Ford and Richardson, (2013), the lower retention rate of the
workforce affects the company in undertaking the smooth functioning and thereby results to an
interrupted improvement in the situation of the workforce.
3. Critical evaluation of the theories and its influence on the managerial practices
The concepts of the ethical theories help the organizations in bringing forth the
integration in the workforce through proper motivation and their sustainable approach in the
organization. It helps in determining the different aspects of the change that is being undertaken

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by the organization for planning their needs for expansion in the market. the application of the
virtue ethics of the workforce helps the organization in making a sustainable approach for their
growth in the markets (MALOŞ, 2012). The application of the ethics helps in determining the
different aspects of the functioning of the workforce through motivation and proper support that
governs the undertakings. Ethics helps in determining the justification of the functions and the
decisions that are undertaken by the organization (Ciulla, 2014). The long working hours and the
hefty schedule that is being imposed by the organization on the employees have helped in
determining the structure of the organization. The important factors that are being considered by
the organization is based on the effective functioning of the organization in the market
(Mahmood, Basharat & Bashir, 2012). On the other end, the mistreatment with the workforce
and the critically competitive workplace environment has caused discontent among the
workforce. It affected the production of the company and the retention rate of the same in the
market. According to an employee, the company has taken steps to dominate over the lifestyle
with their hasty working schedule and their weary and long working hours. It has not only
affected the health of the employees but also affected the efficiency at work (Canina, Palacios
& Devece, 2012). The company demands absolute commitment of the employees towards their
work. It has affected the growth of the company greatly based on the ill functioning and the
interrupted services that are being provided by the employees.
The dilemma that is being faced by the concerned company is based on the inefficiency
of the ethical practices. According to a report published in the New York Times, the company
has taken steps in order to make the employees sacrifice their livelihood in order to serve as the
best elite class working team. It has helped the organization in making its quick progression in
the market (Nytimes.com., 2018). However, the decisions has affected the sustainable approach

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of the organization and can be determined as a poor management policy for getting the work
done. Evidences are being found where the company has taken steps in order to inject a
competitive environment in the workforce through the functioning of a secret feedback system,
which was supposed to keep the employees aware of the issues individually (Hbswk.hbs.edu.,
2018). On the other hand, the high-pressured working environment that is being created by the
management of the organization with the aim of making its progression in the market is the cause
of suffering for the employees. The high-pressured schedule affects the health and the daily
livelihood of the people working in the organization. It is beyond the ethics of the organization
with an approach of sustainability in the market (Lawrence & Weber, 2014).
The communication system in the organization is being compromised through the
autocratic leadership of the management. However, the implementation of the leadership has
affected the structure of the organization largely (Pomerol & Barba-Romero, 2012). In different
ways, the management of the organization and the decision taken by the same influences the
functioning of the organization in the market. The workforce helps in the smooth functioning of
the business however, the lack of ethical decision-making have resulted to a discontent in the
workforce, which results to an irregular flow of work in the organization (Mansouri & Rowney,
2014). Michael, an employee of the organization believed that the company has taken steps that
are favourable for the growth of the company but compromised the welfare of the people
working for the organization. The hefty hours of work and the attitude o the management
towards the workforce has created an impact on the smooth working of the organization in the
market.
The exploitation of the employees beyond their capabilities to contribute to the business
processes is considered unethical for a business enterprise (National Ethics Association, 2018).

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However, the concerned company has taken steps in order to control the lives of the employees
through the allotment of the working hours, which makes it mandatory for the workers to work at
least 80 hours a week despite of the physical and the mental in-capabilities. The company has
decided to fire those employees who fail to show their concern for the growth of the organization
in the market (McGrath & Bates, 2017). The proper exposition of the resources and the
managerial framework has helped the organization in making up decisions that might not be
ethically correct but have implemented them on the workforce for increasing the productivity. It
is to be noted that the concerned company has taken steps in order to utilize the workforce and
exploit them in every possible manner for making a fortune in the market (Minoja, 2012). The
authoritative leadership style of the organization disregarding the welfare of the people working
for the organization has affected largely on the functioning of the organization in the market. The
ethical dilemma that resides within the company is based on the decisions taken by the
organization for its growth and expansion in the market. On the other hand, Tsai and Pai (2014)
believes that the company has progressed in the market because of the hard work that is imposed
on the workers of the organization. It has helped in determining the progress made by the
company in a shorter span since its inception. The people working in the company are actually
facing the risk of losing their lives at any instance due to their incapability to stand up to the
expectations of the organization. It has affected the loyalty of the workers and the smooth
functioning of the operations (Crane & Matten, 2016). The implementation of the decisions that
are undertaken by the company for making its progress in the market affects the livelihood of the
people. The application of the theories on the management of the organization has helped the
organization in bringing forth improvements in the structure of the organization. On the other
hand, Killen et al., (2012) believed that the decisions taken by the management for proper

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management of the workforce would have been more beneficial for enhancing outputs of the
organization. The procedures undertaken by the organization relating to the workforce is based
on the requirements of the organization to make its progress in the international markets. the
dilemma in the ethics of the organization is based on the requirements of the organization to
undertake its progress in the markets. On the other hand, the welfare of the workforce is again a
major consideration that must be undertaken by the organization for promoting its smooth
functioning.
4. Conclusion
Therefore, from the above analysis of the theories of management and the application of
the same on the case of Amazon it can be stated that the management of the organization
influences the proper functioning of the workforce. It helps in determining the motivation that is
being provided to the workforce based on the requirements of the company. The remuneration
that is being provided and the working hours create a major impact on the smooth functioning of
the workforce in the market. Therefore, the company must take steps in order to keep the
workforce motivated. On the other hand, the competitive environment that is being created by
the concerned company in the workplace has affected the working environments. The major
aspects of the change that the company aims at undertaking helps in determining the different
aspects of the management related issues faced by the organization. The decisions that are being
undertaken by the organization are not based on the welfare of the people working for the
organization. Therefore, the ethics seem to collide with the objectives of growth and expansion
of the organization. The dilemma that is being faced by the organization relating to the
functioning is characterized by the decision that is being taken by the organization. The
organization must take steps in order to improve the working conditions. On the other hand, the

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company has made it mandatory for the employees to work 80 hours a week, which might seem
hefty and long for women working in the organization. Therefore, the company must take steps
in order to change the phrase “working in the organization” to “working with the organization”,
which implies that the employees are valued and thereby decisions are made based on their
welfare. This will help in improving the lower retention rate of the company and the retention of
the skilled workforce. The retention of the skilled workforce helps in determining the progress of
any organization in the market. Therefore, the change in the game plan of the organization will
help them in undertaking the possible measures for bringing in improvements in the market
situation.
The most important consideration undertaken by the organization are based on the
understanding of the preferences of the customers worldwide. The feedback that is received from
the customers helps the organization in bringing in changes in the systems of the organization.
As discussed in this report, a very low quantity of the customer segment is bothered about the
sustainable approach of the organization. Therefore, this segment of the customers focuses
mainly on the quality of the services that are being provided. The policies of Amazon must be
revised in order to adhere to the wellbeing of the people working for the sustenance of the
company in the market. The retention of the skilled workforce will also help the organization in
making its improvements in the situation. On the other hand, smooth functioning of the teams
will help in the proficient functioning of the organization in the market. The competition that is
being promoted by the organization in the workforce has broken apart the integrated workforce
to fragments. Therefore, the company must take steps in order to integrate the workforce. It will
help the organization in bringing forth fast improvements in the situation.

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