Human Capital Theory And Strategies Of Amazon Plc

Key Issues for Amazon. The key issue for Amazon.com is that the company’s median tenure is 1.0 years according to the article, “Why Google and Amazon Employees Are Out The Door In Barely A Year” by Anya Kamenetz. Having a high turnover rate can be very critical to a company’s downfall; therefore, the question here is why is Amazon’s employee turnover so high? MSNmoney published the article, “6 reasons Amazon employees burn out so fast” which gives some insight to why so many employees leave this ever so growing company. The main reason would be because of the CEO, Jeff Bezos. According to the article, Bezos is very freighting to

Amazon employees are left feeling angry because they are being given low-paid wages for overworking. This effects Amazon heavily as they are having employees leaving the company and the company it's self has to bring in agency workers as temporary employees. This would mean

In any workplace, workers are no doubt the essential mainstay that holds any business or corporation together. Employees achieve important tasks to help the company’s long term vision and goals to be successful and efficient. A business can’t be successful without a proper management that is why it is important for employees to enjoy going to work and they also have maintain a positive attitude while being productive and completing tasks. Motivation is what gives a person the purpose to perform or behave in a certain way with the desire or willingness to gain something. There are two types of motivations, motivation that comes from a person and motivation that comes from materially goals. It is very necessary that employers keep their employees motivated and encourage them to perform above expectations.

With this being said, motivation is very complex and is continuously fluctuating over time (Maslow, 1954). Getting employees optimally motivated is very difficult, due to the various components that go into motivation. However, when an employee is positively motivated, they will be able to accomplish any task set in front of them.

Amazon and other Tech Giants like Apple, Microsoft, Google, and Facebook receive money because they know how to manage it. Amazon makes around 184 million dollars a year. BUT…, Kate Taylor wrote “Amazon is known for its aggressive growth and when it thrives, other companies suffer.” highlighted in the Amazon is Threatening Other Companies article. They have a large amount of power over democracy and their impact on jobs.

Low cost leadership is pursued by Amazon by differentiating itself primarily on the basis of price. Amazon’s goal is to become customer – centric, aiming to offer a wide range of products with lower prices and convenience to its customers. It can be seen that the company believes offering low prices and focusing on customers are fundamental to Amazon’s success. Over the time, Amazon seeks to mitigate the costs in order to lower the prices through achieving higher sales volumes. The company also finds many ways to negotiate to obtain better terms with their suppliers, and achieving better operating efficiencies. Amazon always ensures that they maintain

This sort of global expansion adds great complexity to the functionality of Amazon’s management, personnel, operation systems, technical performance, financial resources, and internal financial control and reporting functions. With the perplexity of current situations, Amazon may not be able to sustain growth effectively, which ultimately could bring damage to their reputation and limit their operating growth as well. .

From the beginning, Amazon’s culture has been based on the personality of its founder and CEO, Jeff Bezos. Bezos’ ideas have created the $250 billion dollar business that Amazon is today. Bezos has pushed the idea of putting the customer first and is driven by a data-driven management philosophy. Like most corporations, Amazon has a code of business Conduct and Ethics that outlines how the company expects its employees to behave. According to the company website, employees are supposed to abide by the law, work in the best interest of Amazon, refrain from discrimination and harassment, and follow other basic guiding principles (Amazon.com). The code of ethics is vague in terms of how employees should be treated by the company and coworkers. Along with this code, Amazon has a list of 14 leadership principles that employees are expected to abide by in their day-to-day work. These leadership principles are supposed to guide employees in their decision making and are a statement of what the company values.

Extrinsic motivation e.g. Money is the critical incentive to motivation in today's work environment However , motivation differs from individual to individual and with their respective beliefs and values, circumstances and culture. It is important for mangers to identify which motivation factor works with which employee and apply it respectively In any environment, both Intrinsic and Extrinsic motivations are needed for work satisfaction and work performance

According to Miles et al. (1978, p. 547), an organization is both its purpose and the mechanism constructed to achieve the purpose. It means that the concept of organization is embracing both goals and all the elements that represent unique combination. Miles et al. (1978, p. 553) draws the conclusion that structure and the processes taking place inside the organization are closely aligned; it is hard to speak about one without mentioning the other. It is important to understand the conclusion drawn by Miles et al. (1978). It illustrates how the

Amazon, a powerful company, has challenged many of its competitors and nearly causing them to go bankrupt. Jeff Bezos has taken amazon through changes and seemingly all for the better.

With that being said, Amazon will continue to have increased revenue growth and will eventually begin to generate profit.

The corporate culture at Amazon can be described as a task culture according to Charles Handy’s theories of corporate culture, where the main focus is on getting results from the work done. Individuals and teams are empowered to take responsibility and make a contribution. As a result, formal job titles are of less importance, as the emphasis is put on their contribution and problem-solving abilities. (Hoang 194). Amazon has created a sense of belonging and unity within its’ workforce by installing the idea that anyone can contribute. This can be seen through the 14 leadership principles that Amazonians refer to as the “articles of faith”, outlining how employees should act. It is at the core of Amazon’s corporate culture; It’s used in daily rituals, in hiring, at meetings and are quoted in food-truck lines at lunchtime (Streitfeld). Most importantly, it applies to all Amazonians and they are told each one of them is a leader (Sanghani). For instance, the co-inventor of the delivery-by-drone project announced in 2013 was a junior level engineer (Streitfeld). Therefore, the task-oriented culture can be the source of the stressful work-environment stress despite fostering motivation and responsibility within the employees.

While Amazon faces many issues in a rapidly changing economic, political and global environment, this paper will focus on how Amazon can increase loyalty among its customers and continue to differentiate

The main philosophy at Amazon is “to create shareholder value over the long term.” To work through this philosophy, Amazon focuses on customers continually and makes investment decisions in light of long-term