A Report Addressing Organizational Development Of Amazon
Task: Select an organization that underwent significant organizational change (this can be your own organization, or one with which you are familiar).
Drawing on theoretical frameworks, research and current best practice:
1. Critically evaluate the extent to which both the organization design and organizational developmentpractices used were appropriate for delivering the organization’s goals.
2. With reference to your case study, explain and defend the contribution of HR/OD practitioners in ensuring long-term organizational success. Include how the impact of organization design and development initiatives can be assessed.
3. Make 3 recommendations for organization development interventions and change management strategies which could have enhanced this change and/or lead to increased organizational performance going forward. You should justify your rationale for each recommendation.
Organizational developmenthelp to sustain in the current competitive market and make a higher profit within the stipulated time. Amazon is one of the most prominent names in e-commerce industry who are following best suitable organisational design and development-based practices within their organisation. Organisational structure such as Hierarchical org structure, Functional org structure, Horizontal or flat org structure, Divisional org structures (market-based, product-based, geographic), Matrix org structure has been analyzed to understand the current hierarchal situation in the organisation. In terms of proper alignment with the organisational sustainability, Talent Development Capability Model is considered which has made the company to be sustainable through several productive stages of working. In terms of HRM model, Best Fit model has been considered in Amazon in order to make their employees working under a concurrent and reliable working structure within the organisation.
Research and explain Amazons organisational design Organisational design and development practices are based on having the direct implication of different hierarchical and non-hierarchical involvement of different stakeholders within the organisation (Pradhan and Jena, 2017). In terms of the organisational design, there might be different types of sustainability-based theories and models that help to make the internal aspect of the organisation aligned with the broader mission and vision.
In terms of organisational design, here are mainly seven types of organisational design which are depicted below
- Hierarchical org structure.
- Functional org structure
- Horizontal or flat org structure.
- Divisional org structures (market-based, product-based, geographic)
- Matrix org structure.
- Team-based org structure.
- Network org structure
Among these types of organisational design-based structure, Amazon is basically following the Hierarchical structure which makes the internal and external operations of the company to be properly handled. The topmost hierarchy such as CEO, CFO, and CTOmake the companyoperation and daily transactions to be reluctant irrespective of any situation. The primary global groups of Amazon are elucidated as
- “Office of the CEO, headed by Jeff Bezos”
- “Amazon Web Services, headed by CEO Andy Jassy”
- “Business and Corporate Development, headed by SVP Jeff Blackburn”
- “Finance, headed by SVP & CFO Brian Olsavsky”
- “Worldwide Consumer, headed by CEO Jeff Wilke”
- “Legal, headed by SVP David Zapolsky”
- “Worldwide Controller (Accounting), headed by VP Shelley Reynolds”
- “Corporate Affairs, headed by SVP Jay Carney”
Figure 1: Organisationstructure
“How was the organisational design of Amazon appropriate for its business and industry” The hierarchal structure in Amazon makes the daily production and its implications to be reliant on the company's future objectives. The Vice President, Operations head, and CTO make the technical propaganda be handled with care so that there could be no such problems in the future management of the company addressing. The particular responsibility handling and its implication in the organisation through proper ways are helping the company grow at a fast pace.
The prompt action for customer satisfaction and its direct implementation in the daily working aspect of Amazon, the organisational structure is being followed. With the help of proper understanding and alignment of roles and responsibilities in the different position of company departments, the design and development-based approach in Amazon is helpful in delivering commitments to the customers.
“Evaluate the extent to which organisational design helped in delivering organisational goals” Along with the previously mentioned facts, HR manager is also highly competent in making the eligible candidates retained in the company and less competent employees to be terminated so that company gains more assets and fewer liabilities to defer in the future.
The campaigns are created to have a customer-centric approach along with having properly aligned workers in Amazon which makes the internal and external approaches of work to be streamlined. Thus, a co-imperativeness of different aspects is easily taking place within the company for getting highly qualified professionals delivering quality work to the clients of the company.
“Research Amazons organisational development practices”
In terms of organisational development, Amazon is following a particular model which is helpful in developing the future growth of the company. The model is widely known as Talent Development Capability Model (de Menezesand Escrig, 2019). The first stage is the Entry stage which defers the exploration of the problem as the opportunities are hidden under the particular problem. In terms of the successful output of this stage, it enables the proper plan which is related to the mutual expectations of a project.
The second stage is thediagnosis phase which is also referred to as the fact-finding stage. It helps to collect the data and gather those data for the further evaluation stage, which refers to being helpful for action and analysis (Jena, 2021). Thereview of collected data is also enquired within this stage as a successful outcome of the stage.
The third stage is the feedback stage which refers to the different types of understanding, clarity, and accuracy based on the collected data (Sendawulaet al. 2018). In the prospected acquisition, collected data from the diagnosis stage helps to take any further actions which could help to address the necessaryamendments on these aspects.
The fourth stage is the Solution stage which refers to the design, development, and implementation of the solution. This helps to make the proper action or steps to be taken in order to maintain a healthy working prospect in the organisation (Ozcelikand Barsade, 2018). The ineffectiveness and strength of the different team members are considered to address the solution to be implied at the different actions. The Role and responsibility matrix and the training planare considered to be the successful output within the organisation.
The fifth and final stage is known as the evaluation stage which helps to gather the formative and summative assessment and it is to be completed according to the requirements of any specific job requirements.
Figure 2: Organisational development strategy
(Source: Sendawulaet al. 2018)
“How were organisational development practices used to achieve organisational goals?”
In terms of maintaining the highest possible output from the respected operation, the company Amazon has made a daily evaluation process which could help to mitigate the small issues in their working perception. The five-stage model is also helpful in streamlining the daily works in Amazon, which helps both the management and the employees to thoroughly assess the job roles, on the basis of which they fulfil the work in a significant manner.
In terms of achieving the organisational future Amazon practices the cost management approach, which is an effective strategic identification to save cost and utilize the saved cost simultaneously. The process of developing high resource usage has been minimized and thus the saved cost could help in retaining the potential employees by giving them performance bonuses and helping the company.
The aspect of approaching any proposed model to CFO and CTO is the prime aspect of implementing any change in the company Amazon (Bishop, 2021).This takes the credibility ofthe employee and the higher authority in making the change viable in the workplace.
“Evaluate the extent to which organisation development practices used were appropriate for delivering organisational goals”
The different department such as HR, operations, and the production department in the company is followingtheir hierarchical structure to develop the future asset of company. It will be helpful in developing higher possible deficiencies to be properly mitigated within the work procedures. Several policies are being used in the companyby the company personnelwho could help in delivering high-performance-based services to the clients.
Due to the Covid-19 based issues such as shipping costs, taxation, and volatile currency fluctuation are considered to be mitigated in the different branches of Amazon. Thus, it would help in diversifying differenttypes of needs of the company accordingly (Jacobs et al. 2019). The narrow span of control and a clear line of communication is the prime aspect of Amazon which is being considered as the primary USP for the company Amazon. In terms of adapting the company's long terms vision and mission, theoriessuch as the re-engineering approach, contingency approach, and knowledge management approach are considered to be present in the company.
Lewin’s change management model isbeing consideredfor the changes that are being considered in the operation process of Amazon, there arebasically three stages such as freeze, unfreeze and refreeze. Along with thisContingencytheory of management is considered to be beneficial for Amazon, which is one part of the company development. This theory includes “management effectiveness is contingent, or dependent, upon the interplay between the application of management behaviours and specific situations”(van de Wetering, R., Mikalef, P. and Helms, R., 2017).
Explanation the contribution of HR/OD practitioners in ensuring long-term organisational success
In terms of long terms organisational success, the internal and external operations of a company needto be aligned accordingly (Singh, 2019). The HR practitioners and the OD practitioners are very much comprehensive in tackling this aspect of delivering quality works to the clients. Handling the manpower as well as getting the proficient work delivered to them is being maintained by these two departments. In the process of managing any existing employees in an organisation as well as attracting and recruit and potential employees in the organisation, HR department is actively involved in the completive field all over the world (Milliman et al. 2018).
In terms of strategic development, Amazon is following the "two pizza rule" which makes the company associates be highly sensitive and focused on their work. This is one of the mostessential aspects of delivering quality work to clients. The perception of having a small amount of work and delivering it with quality is the first priority of Amazon which is being followed by the company's higher authority. Thereis another strategy that is being followed by the company Amazon, mentioned as the SHRM model of “best fit”. It is helpful for proper recruitment and retention of the best possible candidates from the competitive market. This will also compensate in different other necessary aspect such as constant innovation, creating added value to society (Robert, 2018). The behaviour of each and every employeeneeds to be treated with equal importance as well as their working ethics. This helps to mitigate the nominal and major issues such as stress and focus problems in the workplace.
The reward and punishment strategy also helps to encourage more and more potential candidates to join Amazon. The futures of the company thus arevalidated throughout the operational procedures. Timely salary dispatch and the mitigation process of small or minor issues in the workplace such as employee bonding issues and equal opportunity-based programs are handled by the HR department of Amazon very well (Bishop, 2021). It is one of the most important aspects of developing the company's overall reputation.
In terms of retaining an employee as well as developing the internal skill and capability of that employee, Amazon has invested a huge amount of money in the training and development department in the company. Organisational development (OD) interventions help the company to maintain the highest benefits and the future potential to reach the competitive market is justified.
The main roles of OD are based on having “implement and oversee programs that increase efficiency, strengthen employee knowledge and abilities, improve leadership and maintain the overall health of a company” (Ramli, 2019). This is essentially maintained by the company personnel of Amazon. Safety, health, and well-being are the three basic aspects of the company Amazon which are being considered throughout the company actions. In order to minimize the work-related injuries in working in Amazon, the corporate HRs are providing necessary supports which could make the employees be more competent in work.
Maintaining a continuous flow of work and quality assured work is the main criteria of long-term evaluation of a company, Amazon has achieved a successful base of clients which could help in elevating the future ROI of the company and also help to attract potential future customers (Howland, 2017). The high amount of investment and its return will also help to cater to more investors to include them in the company partials (Kosasih and Basit, 2018). The processing and final financial report will help to evaluate the employees to be a part of the share of the company along with their job role which helps them to be more motivated in their work.
Amazon is one of the most trusted online delivery platforms and it has been upliftingcontinuously all over the world. The perception of delivering high quality of goods and services within a stipulated time has been one of the most emerging taglines for the company. In this scenario, the main issues oforganisational development and its implementing process has been discussed. It will help to shed light upon the different approach and practices in not only UK but in different countries also according to the futurevision and goal fulfil prophecies of the company.
There are mainly three recommendations that could help in maintaining the internal san external process of Amazon to be helpful for the recent transformation. The company is looking forward to employing more humans rather than just implementing more and more A.I and Robotics-based software system within their company.
1. Training and development to the existing and potential workers for retention
The training and development are one of the necessary parts of any company development which could be made with proper care and significant strategies also within the company agenda. The company, Amazon must have to find out the weaknesses of their employees and turn these weaknesses into their strengths to improve the outcome of both the organisation and the employees. This could be helpful in segmenting higher possibilities in comprehensive management and its implication towards building a sustainable and better future for Amazon in the marketplace.
Thus, it is an essential part of increase in company reputation and revenue at the same time. The company has already started to invest in Billions for their training segment. In this consideration, the investment should be made properly through the channelized and experienced trainers who are capable enough to recognize the need of the company and train the employees accordingly
Latest supply chain technologies and the A.I and Robotics-based software could also be taken its consideration for the betterment and accurate delivery of company commitment to their clients. The lesser usage of different technologies is also needed to be checked so that there could be no such discrepancies in giving more preference to software and not humans.
Amazon has made a specific strategy which is known as Pivot, in order to develop the underperformed employees in order to aid them in the near future to sustain in the company. Specific and intensive care in this prospect is yet to be taken by the company personnel which will help to strategies the existing employees to perform better in their working capabilities. The Seattle-based company has about 275,000 full-time employees who will get benefit from proper usage of this training module. The process of developing the highest possible commitment within the structured and highly competent training module is needed in the company according to the need of developing proper competencies within the employees.
2. Create a roadmap to cater the need and gap in employment by retaining their workers
The previous workers who are already working with the company must has to be reliant to the upcoming changes in the company for their sustainability. In this consideration, Amazon could give a performance bonus and certain hikes to their reliable and highly committed to their employees who could be proven to give benefits in their future perspectives. The comprehensive strategic enhancements of delivering high competences among the work process are needed to have a proper roadmap, designed by the HR personnel head of Amazon.
The CTO and CFO of Amazon must have to approve the roadmap which is produced by the Amazon HR in order to cater the gap of employment by retaining and promoting the different workers within the company. The sense of commitment and long-term bonding will thus be retained among the employees also and they will possess a certain seeking aspect to serve the company for a long-term prospect.
3. Regular feedback taking and engaging in more activities (Seminars, social cultural fests, premium module for free, share in the company)
The retention of employees in Amazon are based on having proper feedback taking and addressing the feedback-based actions regularly. This implies the importance of delivering quality based works to the clients of Amazon. Along with that the daily feedback for will be needed to address to the personnel of Amazon as well as their employees which will help to build a transparency among the workers and the company. The drawback and lacing of each and every employee should be addressed through this feedback for. Implying equal focus in the new workers and also in the existing workers is the main aspect of Amazon HR policies which is one of the essential parts in delivering company commitments.
The social and cultural engagements are the most prioritized action or step of actions which is needed to be taken in this prospect. In terms of delivering quality based works to the workers of Amazon, more emphasis on the diversified work culture would be given as a priority in Amazon work culture. The prospect of attaining more seminars and workshop related to cultural development is needed to be attended by Amazon employees who will help to maintain a sustainable balance in the workplace.
Maintaining a diversified work culture is one of the most important aspects which help to increase sustainability in Amazon. It will be comprehensively meaningful estimating higher number of ROI in the work performance of employees. Any kind of work could be done in many specific ways rather than doing that in a single focused approach. Thus, more different number and different culture-based employees will be helpful in delivering the specified projects in best possible ways. Engaging more in a number of cultural activities is helpful in considering high bonding among the employees. The betterment of personal as well as professional behaviorbased approach is thus needed to be implied in this prospect. The improvement in competences and compatibilities are thus justified throughout the process.
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