User:Swabdhakanya/sandbox

Background to Amazon

Amazon is one of the leading companies in the world, its known for its e commerce website and the company was started by Jess Bezos in 1994. Amazon has grown from 158 employees to 1.3mn people around the world (Amazon Annual report, 2020). Amazon has grown immensely and are operating warehouses and managing inventories. Time has come due to recent past that company is undergoing scrutiny of not managing their TBL, especially when it comes to People and the Planet, Amazon need to look into managing productivity and performance to increase profit, alongside a commitment to appropriate management of human resources with consideration for the sustainability at the core of the company. Effectively and efficiently are two words which are dependent on each other. Effective is to do the right things and efficiency is to do the things in the right way. It’s not enough for an organization to be only effective without being efficient or to be efficient without being effective at the same time. These two elements can immensely increase your business potential growth if you have a balance of efficiency and effectiveness in your business (Sutevski, 2021).

Productivity in any organization is the relationship between output and input the resources you use for the output you need to derive at, it can either be low or high depending on the efficiency in the production line or service (Tangen, 2002)

Let's critically analyze challenges of effectively managing productivity and performance

1.	Fulfillment processes – Amazon has one of the service attributes as to make sure accuracy of fulfilment at the lowest price, how will they fulfil this promise when the barcode scans 15 times. As the customer base increase and they are going into more automation and development they will have to look at delivery and how it can be done at cost-effectively and efficiently

2.	Managing big data Amazon has a lot of data about customers. Amazon needs to look at how to manage this data and transfer the date into knowledge. It shouldn’t be a case of data paralyzing. Amazon need to look at investing a datamining system to identifying customers’ needs buying patterns and study the customer journey to efficiently and effectively enhance the productivity and performance in the longer term

3.	Supply chain – there are four segments in supply chains in Amazon i.e warehousing, delivery, technology and manufacturing. As the company is going into more CSR angle, they will look at more greener supply chain such as suppliers who ate more concerned with reducing emissions etc. and look at ethical behavior which is particularly important when international supply chains are involved.

4.	Increasing Productivity through CSR – Amazon’s current leadership style will not enhance to achieve the CSR agenda which they have mentioned. They will have to critically evaluate how to change the HR policies and to change a regenerative leadership culture to achieve the sustainability goals. They will have to buy in the internal stakeholders' support as well.

5.	Competitors- Amazon has a lot of direct competitors such as eBay AliExpress and indirect competitors such as Walmart, Sainsbury etc.,. Amazon needs to have a strategy as to how to deal with these suppliers as they are looking at more sustainability approach and how they can achieve a competitive advantage in the near future as they are changing their systems and processes to be more automatic and efficient. Jeff Besoz has always believed as he had quoted in his book Invest and wonder that he is a firm believer of short-term profits and long-term growth, one of the challenge Amazon is managing short term enhancements into long term sustainable enhancements. If your committed to CSR goals it will enhance your sustainability in the longer-term increasing performance in the company. So they might have to changing the mindset slowly and steadily for achieving long term Sustainability.

Lets critically analyze opportunities of effectively managing productivity and performance

1.	Automation – Amazon Is investing in greater deal in automation such as AI and robotics this will enhance productivity and performance as repetitive work will be taken care of. In addition, the room for error will be minimized however this might lead to employee laying off but Amazon needs to invest in employees who has multi skills which will benefit the company in the longer term.

2.	CSR commitment and going carbon neutral – This will enable Amazon to be committed to TBL and thereby creating opportunity to position Amazon as sustainability champions leading then to have a competitive advantage in the market. This will also enhance productivity and performance which will automatically increase and enhance the profitability and the brand value.

3.	Strategic Partnership – Amazon look at having global parentship, strategic partnerships which will enhance the supply chain and service. Amazon can also look at outsourcing certain operations such as transportation fleet in a particular country which will enhance and increase productivity.

Management of Human resources with a consideration for sustainable TBL.

Amazon has been several issues within the company relating to Human resources such as having a toxic culture and employee dissatisfaction. Amazon should concentrate on human resource management and human resource development. The company should also invest an employee focused performance management system which would spell out the quantitative and qualitative KPI’s. They should also develop a system to obtain feedback from the employees where the company will act upon as well.

The KPI’s which are set need coincide with CSR goals which are set within Amazon so that the company has the buy in of the employees to achieve them and to make employees partners in this sustainability initiatives. For HRM to thrive for sustainability it needs to have the necessary culture and the structure to facilitate it.

Amazon needs to ensure to retain talented and committed employees because they add value to the organization, the toxic culture which is currently experienced has to be changed immediately.

In the TBL initiatives Amazon is doing extremely well in terms of profit but when it comes to people there is a huge issue which has room for improvement, Amazon should create a people-oriented culture within the company. To do this Amazon needs focus on human resource principles which give recognition, rewards, motivates the employees and empowerment with accountability.

Amazon is known for the customer centric approach and for its fastest delivery, accuracy in their deliver, giving customers value for money and ensuring last mile delivery. In order to do this, they have the necessary systems and processes which delivers this customer service, but it is paramount to deliver this service with a workforce which is motivate and empowered which will take the service to the next level.

Regards to planet the goals which are set by Amazon is very challenging, but it needs to be appreciated. This can only be achieved with a skilled, empowered and loyal workforce, if not Amazon is going to find it difficult to attain these sustainable goals in the longer term.

Conclusion Amazon should realize that they must concentrate on planet and people. If the planet and people are happy automatically you will obtain your profits. The proper systems and processes by managing effectively and efficiently will enhance service productivity, employee productivity and motivation and also enhance the culture. All of this must be integrated together at the right mix for the company to flourish and achieve sustainability in the longer term. Amazon needs to concentrate in having the correct leadership style which will facilitate with the HRM. The HRM cannot be divorced with the business environment and Amazon is operating in a Vuca world they would have the opportunity and threats in such backdrop of environment, hence in the longer-term employee perspective must be considered and related to the contingency that may arise with the nature of the business.

Recommendation'

1.	Line Managers – Line managers are increasing and in the modern day its moving where the line managers do the human resource operational function with the minimal support from the HR department. In the case of Amazon, Line managers should be trained to manage people particularity in terms of managing performance, motivating employees and handling operational grievances. Also further Amazon needs to keep training and development of employees is important keeping the future plans of the company in mind, therefore a more an employee is engaged with the organization the more relationships are built a friendly culture is created to enhance productivity, operational efficiency and bottom line performance

2.	High Performance Work Systems – In competitive industry high performance is expected from employees and they need to demonstrate agility to perform. Proper HPWS has to be implemented to facilitate agile working conditions, to encourage people to go the extra mile, proper career development systems and good working and hygiene factors. This enhance the working culture and output of employees and loyalty within the organization will be built

3.	Looking at the Matching model theory HRM does not operate in a vacuum there are external and internal forces that has an impact on HRM. Amazon is a global organization and will be affected by macro environmental forces. Amazon strategic decision is clear however the present organization structure does not lend itself favorably in terms of long terms strategic decisions of Amazon as such the new CEO will do well to look at the cultural re alignment supported by an organization restructure which will enable the organization to achieved strategic sustainable objectives through a talented workforce.

Referencing

2020. Amazon Annual report. [online] Available at:  [Accessed 14 July 2021].

Sutevski, D., 2021. Efficiency and Effectiveness Matrix. [online] Entrepreneurship In A Box. Available at:  [Accessed 14 July 2021].

Tangen, S., 2002. Understanding the concept of productivity.

Golicis, s., Boerstler, C. and Ellram, L., 2010. Greening Transportation in the supply chain.