RMIT University: People Management in Amazon - Report Analysis

This report provides an in-depth analysis of people management practices within Amazon. It begins with an executive summary highlighting the importance of internal management improvements due to changes in management approaches and employee demands, particularly focusing on work-life balance as a crucial concern. The report identifies key issues such as high employee turnover rates influenced by excessive workloads, negative work environments, and leadership challenges. It explores the impact of Amazon's HR practices, including compensation and employee rights, and compares Amazon's management approach with those of Google, Facebook, and Uber. The discussion section proposes solutions like distinctive management approaches, effective employee engagement strategies, and customer-centric business practices to address the identified problems. Furthermore, the report delves into the influence of the macro environment, including labor market dynamics, economic situations, and technological advancements, on people management challenges. The report concludes with key learnings and references.

Running head: PEOPLE MANAGEMENT IN AMAZON
People management in Amazon
Name of the student
Name of the university
Author note

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Executive summary
In this study, it has been identified that it is true that due to changes in management approaches
as well as changes in demands, improving the internal management boundaries have become the
important concern. It has been identified that work life balance is the important concern in this
Amazon. It is true that due to excessive workload on the employees as well as improper
relationship between the managers and employees, negative working environment in Amazon,
influences the employee turnover rate in the company. In case of dealing with the increasing
employee turnover rate in Amazon, it can be said that introducing effective employee
engagement strategies in the market, the company can introduce betterment in the workplace

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Table of contents
Introduction......................................................................................................................................3
Background......................................................................................................................................3
Identification of issue and problem.................................................................................................4
Discussion........................................................................................................................................5
Conclusion and key learnings..........................................................................................................9
References......................................................................................................................................11
Annexure........................................................................................................................................13

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Introduction
In the 21st century, the modern business management practices have significantly
impacted on the employee management system in the workplace (Noe et al. 2017). In is true that
due to increasing customer centric business approaches, it has become necessary for the
management to satisfy the customer obsession. In that case developing own management
boundaries for providing the flexible space to the employees can ensure the innovative
operational practices in the workplace (Ahmad 2015). However, it is true that due to changes in
management approaches as well as changes in demands, improving the internal management
boundaries have become the important concern. The purpose of this study is to shed light on
emerging issues in Amazon and those significant impact on employee management practices.
Critically analyzing the distinctive management approach, the study has focused examining its
impact on Amazon’s success. By continuing this the study has focused on comparing the
management approach of Amazon with other tech giant and analyze the important contribution
of macro environment in order to influence the people management challenges in Amazon.
Background
Amazon is being considered as the largest ecommerce organization that was founded in
the year 1994 (Qz.com 2019). The company has faced rapid growth in the market within last few
years. Changing consumption terns as well as purchasing perspective of the customers has
impacted on the business success of the company. The study has developed based on the people
management system on Amazon. It has been identified that although the company has
development various management principles for improving the corporate practices, however,
improper implementation of strategies, managing the people in the workplace has become highly
challenging for the company.

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Identification of issue and problem
Main issues
Analyzing the people management challenge faced by Amazon, it has been identified that
HR practices have become the important concern in this organization (Stewart and Brown 2019).
The HR professionals have faced the allegation for not providing enough time for recovering
from the issues like cancer, personal crisis and miscarriages. In this case, the employee have
complained that their employee rights are not being provided by the managing authority. By
continuing this Pavlov et al. (2017) stated that it has also been identified that the working nature
in Amazon has turned into complex situations. In order to create the thrilling work environment
and maintaining the pressure on the employees, sometimes the company takes punishable
approach. It has been identified that negative work environment as well as increasing workload
on the employees has driven job stress and anxiety. In the case scenario, it has been mentioned
that Amazon is the wrong career option that has reduced the creative skills of individuals. In
order to codify the innovative business ideas, the managing authority in Amazon has focused on
introducing constructive business approach for competing in the modern business environment.
Although the company has introduced 14 leadership principles, however, due to lack of
transparency in the operational process, it becomes challenging for implementing these
initiatives. In the words of Shaukat, Ashraf and Ghafoor (2015), it has been identified that work
life balance is the important concern in this company. It is true that due to excessive workload on
the employees as well as improper relationship between the managers and employees, negative
working environment in Amazon, influences the employee turnover rate in the company. On the
other hand, leadership can be considered as the important challenge faced by amazon employees.

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In the workplace availability of the autocratic leadership approach, impacts negatively on the
business operations.
Minor issues
As stated by Haider et al. (2015), in the current working environment, competing with the
tech market giants, the company has introduced standard compensation plan. However, it is true
that the travelling and cell phone expenses are often being pained by the employees, which
dissatisfies the customers in the company. In the corporate office of Amazon, self-reinforcing
management practices are being followed by the company that creates excessive pressure on the
white collar employees (Pavlov et al. 2017). Amazon gives excessive workload on the
employees in case of following the running the continual performance management algorithm.
As a result, the high attrition in the company has created important barrier for maintaining the
positive people management system in the workplace. The disproportionate numbers of
candidates in different sectors create challenges for the Human resource professionals to perform
their job. The major challenge in the company is rather than focusing on reducing the turnover
rate, the company maintains its continuing recruitment process.
Discussion
Solutions to the problems
Distinctive management approach can be considered as the most effective human
resource initiatives that can play an important role for ensuring the successful people
management in the corporate field. As stated by Zeng, Phan and Matsui (2015), in order to gain
the competitive advantage as well as managing the skilled labor engagement this approach can
be considered as the effective employee management approach. In case of Amazon, it has been

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identified that in order to ensure the positive growth in the market, the company has introduced
thousands of job prospects in every year (Andries, Winne and Bos-Nehles 2019). In case of
Amazon it has been identified that by developing the direct link with the new employee
responsibility and output process, growth is being measured. In order to retain new employees
attractive wages structure has been introduced by Amazon. In order to stop new employees to
leave the organization in the first year of job bonus as well as compensations are being signed to
them. In the leadership principles, the company has mentioned about focusing on customer
obsession. Rather than sacrificing the long term organizational value, the company has focused
on avoiding the short term success opportunities. It is true that the distinctive employment
approach in the company has ensured high standard of performance in the workplace. In this
organization, the customer centric business approach is being followed by the company, in that
case, maintaining the business standard frequent business auditing practices in the workplace has
significantly impact on its success.
Analyzing the current management approach in Amazon, it has been identified that rather
than focusing on retaining the old employees, the company has focused on managing the proper
engagement of new employees in the workplace (Andries, Winne and Bos-Nehles 2019). It is
true that due to increasing workload on white collar employees in the workplace, it has become
challenging for the company to ensure employee satisfaction in the workplace. In order to
compete with the tech giant in the market, the company has also increased the wages structure of
the employees. Analyzing the current management approach in the company it has been
identified that the company focuses on introducing the effective organizational culture rather
than being ‘warm and fuzzy’. In order to double the operating income; company sometimes
follows the punishing aspects. It is true that in the workplace ‘purposeful Darwinism’ approach

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is being followed by the company (Qz.com 2019). Following the tough organizational culture the
company focuses on maintaining pressure on the employees for following the standard
performance metrics (Chathurika and Dileepa 2016).
In the comparison with Google, the people management approach in the company starts
from the hiring process. In the workplace, the company follows intense cultural approaches for
measuring its effectiveness. Transformational leadership practice can be considered as the heart
of Google management approach (Inc.com 2019). In case of ensuring the positive people
management, the company focuses on pushing the decision making ability to the individuals for
ensuring the positive engagement of them towards the company growth. In case of providing
learning and growth opportunity, both the personal and professional development of the
employees are being ensured in the workplace. In the comparison of Facebook management
approach with Amazon, it can be said that following the unique management approach Facebook
ensures the collaboration, innovation and openness in the workplace (Tlnt.com 2019). The
corporate message of the company directly focuses on encouraging the internal interaction
between managers and the employees. By continuing this, Dahlberg (2019) opined that it can be
said that following the ‘come to culture’ approach the company aims to provide flexibility to its
employees. The major different between Amazon and Facebook is in the first care, ultimate
productivity is the priority of the company, on the other hand, the company not only focuses on
high operating revenue, but also in this case, long term employee engagement is also being
highlighted. In both the cases, the diversified working culture influence the positive people
management in the workplace can be ensured.
In case of comparing the Amazon management approach with UBER, it can be said that
high similarity between these two companies has been identified. In both the cases, the

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companies follow the aggressive management approach for ensuring the growth opportunities.
It has been identified that kalanik’s managerial approach in the workplace has become the
important concern for the company. Like Amazon, workplace harassment has also become the
common issue for UBER (Forbes.com 2019). In both the cases, the company values as well as
attitudes towards employee engagement is similar. However, recently the company has focused
on managing the leadership practices in case of improving the employee management system.
As stated by Zeng, Phan and Matsui (2015), there are various key influencing factors in
the macro environment those are significantly responsible for driving the negative impact on
people management. Analyzing the current labor market in Australian, it has been identified that
depending on the labor demand as well as supply characteristics, employee management
approach in the workplace gets affected. In the high availability of labors in the market, the
tough management approach is being adopted by the companies as in this case proper supply of
knowledge as skills in the market increased the job demands among potential candidates. By
continuing this, it can be said that due to educational opportunities in the country, availability of
skilled employees has increased the job demand in the market. In this situation, rather than
focusing on reducing the attrition, the company focuses on recruiting process. On the other hand,
By continuing this, Dahlberg (2019) opined that economic situation in the country also impacts
on high availability of employees in the market. It is true that in the Australian market,
increasing rate of migrated people has impacted on the Australian labor market. It is true that due
to increasing involvement of technological equipment in the management practices, ensuring the
performance efficiency in the workplace has become an important concern. Due to availability of
technology, need for man power has got reduced, which also increased the demand for job in the
market.

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It is true that in order to shape the HR performance in the corporate sector, socio
economic as well as cultural background plays a significant impact. People with similar cultural
perspectives can be easily managed. However, in case of diversified working environment,
chances of dissatisfaction among the employees get increased. On the other hand, it is also true
that in the global aspect, cross cultural diversity based on race, religion and communication can
create the stressful situation for the employees.
In respond to the above case scenario, it can be assumed that proper leadership
approach can help to improve the management practices in Amazon. In the words of Shaukat,
Ashraf and Ghafoor (2015), like the giant Google and Facebook, Amazon may also adopt the
transformational leadership approach for improving the internal management boundaries. By
continuing this, it can also be suggested that rather than following the aggressive management
approach, the company cam focus on adopting consultative management approach, in which the
employees can be able to be the part of discussion process. It is true that avoiding the high
turnover rate in the workplace, proper implication of Human relations theory can help to deal
with the communication challenges between managers and employees. Analyzing the emerging
challenge in Amazon, it has been identified that pressure from managers, it has become
challenging for the employees to work in the company. On the other hand, in responds to the
improper wages structure as well as lack of management transparency, it can be suggested that
improving the administrative structure, the company needs to focus on the legislative
framework based on employee health and wellbeing in which all the employment standard
related practices needs to be revised (Andries, Winne and Bos-Nehles 2019).
Recommended solution

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Effective leadership approach can be adopted by the company in case of improving the
internal culture. Rather than focusing on aggressive management approach, the transformational
leadership approach can help the company to deal with emerging situations.
Conclusion and key learnings
In this study, it can be concluded that people management can be considered as the
important component in HR function. It is true that based on the people management initiatives,
growth in an organization can be driven. In case of dealing with the increasing employee
turnover rate in Amazon, it can be said that introducing effective employee engagement
strategies in the market, the company can introduce betterment in the workplace. In the end of
this study it can be said that the areas which have been highlighted in this report can also help the
company to develop sustainable policies in the workplace for avoiding negative situation in
future.
References
Ahmad, S., 2015. Green human resource management: Policies and practices. Cogent business &
management, 2(1), p.1030817.
Andries, P., De Winne, S. and Bos-Nehles, A., 2019. Knowledge management practices for
stimulating incremental and radical product innovation. Strategic Renewal: Core Concepts,
Antecedents, and Micro Foundations, p.1789.
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Dumaresq, D. and Pittock, J., 2018. Fish consumption on the Amazon: a review of biodiversity,
hydropower and food security issues. Brazilian Journal of Biology, (ahead).

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Chathurika, H.J. and Dileepa, M.E.W., 2016. PREDICTING EMPLOYEES'JOB
SATISFACTION WITH PEOPLE-RELATED TQM PRACTICES: CASE IN APPAREL
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telecom sector. International Journal of Economics and Financial Issues, 5(1S), pp.63-69.
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Pavlov, A., Mura, M., Franco-Santos, M. and Bourne, M., 2017. Modelling the impact of
performance management practices on firm performance: interaction with human resource
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