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Final Paper
Ashley Oquendo
Human Resources, Post University
HRM 335: Organizational Behavior
Professor Dan Tegolini
December 10, 2023
2
Final Paper
Amazon is the top online retailer globally, offering a wide range of products and services.
Founded by Jeff Bezos, it initially focused on selling books online before expanding into its current form. With a market capitalization of $1.519 trillion (CompaniesMarketCap, 2023), Amazon is a dominant global force that has transformed the way we shop and live. One of its most successful endeavors is Amazon Prime, renowned for its free two-day shipping and discounted one-day shipping rates. Amazon consistently works to improve customer satisfaction and delivery times as technology advances. Utilizing Lean Six Sigma can assist Amazon in maintaining its position as a leader in the online retail industry.
Organization Change Approach
Six Sigma involves methodologies and tools for enhancing business processes by decreasing defects and errors, minimizing variation, and improving quality and efficiency (Kumar, P., 2023). Lean Six Sigma merges Lean and Six Sigma to create a powerful process improvement technique. Lean focuses on reducing waste and maximizing efficiency by identifying and eliminating non-value-adding activities. This includes streamlining processes, decreasing defects, improving quality, and optimizing resources to provide more value with less effort (Kumar, P., 2023). Six Sigma is a statistical approach to process improvement that aims to reduce variation and defects through data-driven decision-making. It includes defining, measuring, analyzing, improving, and controlling processes to achieve consistent and predictable
results (Kumar, P., 2023). By combining the strengths of these two methodologies, Lean Six Sigma presents a comprehensive approach to process improvement.
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Organizational Goals The objectives of Amazon are to improve operational efficiency, minimize errors, boost customer satisfaction, and increase Return on Investment. Each objective is crucial for enhancement. Operational efficiency pertains to a company's ability to decrease inputs while maintaining the same level of outputs. It specifically compares the resources needed to sustain a business – such as costs, employees, and time – with the outcomes obtained, including revenue, market differentiation, customer acquisition, and retention (Harper, 2023). Prioritizing this measure can help a company achieve favorable profit margins, satisfy investors, and deliver high-quality products that meet consumer demands.
Amazon demonstrates operational efficiency in managing customer orders. Inefficient operations can result in issues for buyers, such as late shipments, damaged items, and missing products. Human errors, as explained by Fitzgerald (2023), involve unintentional actions that go against a company's established practices, guidelines, or code of conduct, potentially causing significant harm to a company's reputation, financial standing, and future prospects. Automating repetitive tasks can help prevent many human errors. Amazon processes and delivers new orders continuously, handling 18.5 orders per second, which amounts to 66,000 orders per hour and 1.6 million shipped daily (Flynn, 2023). Implementing automation would reduce the number of repetitive tasks Amazon employees need to complete, thus reducing the risk of human errors.
The significance of customer satisfaction lies in its ability to enhance competitive advantage and expand the customer base. Sustaining current customer loyalty and attracting new ones hinge on customer satisfaction. The repercussions of losing customers can disrupt the customer journey and lead to a chain reaction of dissatisfied customers. It's a well-known fact that an unhappy customer is more inclined to share their negative experience than a happy
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customer is to spread positive feedback. As of October 2023, there were 5.3 billion internet users
globally, constituting 65.7 percent of the global population (Petrosyan, 2023). Among them, 4.95
billion, or 61.4 percent of the world's population, were social media users (Petrosyan, 2023). The
ease of sharing reviews has amplified the impact of customer experiences, as dissatisfied customers can now broadcast their grievances to a wide audience of social media users.
Return on investment is a metric that assesses the effectiveness and profitability of an investment or compares the efficiency of multiple investments. It provides valuable insight into long-term success and informs future business decisions. Return on investment calculation is crucial for businesses of all sizes and industries, as it directly correlates with operational efficiency, errors, and customer satisfaction. Failure in these areas can negatively impact Return on investment and reduce profit margins.
Goal Measurement
Achieving Amazon's objectives through Lean Six Sigma implementation can be gauged by various metrics. Quality enhancements, financial outcomes, and sustainability are crucial for reaching business targets. Prioritizing these metrics enables Amazon to evaluate the impact of Lean Six Sigma organizational changes and promote ongoing improvement. Enhancements in quality and staff engagement directly impact operational efficiency. It is
essential to assess factors that may impede production and consume unnecessary resources before enhancing operational efficiency. An operational audit, which evaluates the current state of operational efficiency, involves scrutinizing the organization's business practices, processes, procedures, and systems. This process extends beyond the company's financial status and evaluates its management approaches to pinpoint areas for improvement, ultimately enhancing Amazon's operations for greater efficiency, productivity, and effectiveness.
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Measuring human errors can be done through customer feedback and defect rates. Pinpointing human error precisely is difficult due to its unpredictability, but one effective way for Amazon to reduce human error is through automation. Workplace automation is a digital transformation strategy that enhances productivity and performance (Indeed, 2022). This strategy
reduces the need for direct human involvement in a company's operations. Workplace automation allows companies to minimize the occurrence of human errors that often arise when employees perform manual tasks such as invoicing and data entry. Machines can efficiently handle simple tasks like inputting customer addresses, correcting errors, and generating shipping labels without distractions. This enables employees to access data more quickly with fewer errors
while preventing miscommunication and redundant work. Improvements in quality can also result in increased customer satisfaction and loyalty, which can translate into higher revenue and profitability (EALSS Academy, 2023). Customer satisfaction can be gauged using tools and processes for analyzing customer service feedback, such as artificial intelligence. By utilizing artificial intelligence (AI) for keyword research, Amazon can streamline the process, saving valuable time and resources. Furthermore, AI enables
the discovery of new and unexplored keywords that may not be on the radar of Amazon's competitors. Moreover, AI assists in understanding the underlying search intent and requirements associated with each keyword, facilitating the creation of content that aligns with them. This approach enhances the significance and credibility of the content by using appropriate
keywords, topics, and links. Ultimately, this leads to improved customer satisfaction through effective quality management.
The financial impact is used to assess the value of investing time and resources in Lean Six Sigma by evaluating revenue, savings, and return on investment improvements. This
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