Major Management issues in Amazon

Management is the process of dealing and controlling the employees and other things of an organization (Paillé et al. 2014). The organization chosen for this study is Amazon. It is the popular American electronic commerce company. The study will discuss the overall problems in Amazon, which has been described in the case study. Moreover, the study will also provide some solutions to the problems and links those solutions to popular theories. Apart from that, the study will also provide one preferred solution for the organization based on the priority of the problems.  

From the case study of Amazon, it has been found that the organization has major problems of employee work-life balance. Jeff Bezos, the founder of Amazon has already rejected some popular management approach, which similar other organizations usually follow (Direnzo, Greenhaus and Weer 2015). Those organizations at least provide lip service. However, the founder of Amazon has designed a management approach, where the employees are treated like machines, which propel them towards achieving the ever-expanding ambitions of the organization.

Employees do not even get leaves for their serious physical illness. In case of annual retrenchment, the poor performers used to leave or they are fired from the organization. Even the employees, who suffer from serious illness like cancer or any other personal issues, are evaluated unfairly (Brough et al. 2014). They are not given enough time to recover their issues. It demonstrated lack of motivation in the workplace and creates lower morale of the employees.

The employees, who were not able to put their utmost efforts for 80 hours a week, are considered as having weak performance. It means the organization has major work-life-balance-issue. On the other hand, the founder of the organization has also initiated a toxic workplace environment. The founder has initiated a competitive environment in the organization, where employees are competition with others regarding their performance (Cowart et al. 2014).

Mostly importantly, in case of Marathon Conference, the employees are assessed based on certain valueless criterions. These criterions actually misbalance the work-life of the employees rather than increasing employee productivity. Moreover, the employees are intended to sabotage each others. The organization also has health and safety issues in the workplace, which can cause physical injuries to the employees (Chan et al. 2016). The employees are always monitored with sophisticated electronic systems for ensuring that the employees are packing enough boxes every hour. They are even to work at 100 degree heat with ambulance waiting outside.

Amazon usually follows self-reinforcing management style, where the employees are to control their own work and encourage themselves by their own way. This style is usually designed for getting more and more outcome from the white-collar employees, which is actually creating huge work pressure on the employees (Malik et al. 2014). On the other hand, this approach also hinders the effectiveness of organizational team approach, which discourages the employee morale.

Work-life balance and employee evaluation

In case of Organizational Level Review, the organization use to rank employees having high performance and low-performers are assessed with their performance in front of high performing employees. In this way, it can actually create interpersonal conflict among the employees.  Workplace harmony is simply avoided in the organization, which creates lack of support in the organization for the employees. Apart from that, the organization never promotes female workers in higher position (Agarwal, Mishra and Dixit 2015). In this way, there is unequal employee opportunity in the organization. Moreover, the leader of the organization is bureaucratic in nature.  

Starmer, Frintner and Freed (2016) opined that Adairs three circles model suggest three responsibilities for the organizational management towards fostering positive organizational outcomes. The three responsibilities are achieving tasks, managing teams and managing individuals. However, Amazon is only concerned with the fist one and avoids the last two, which are team and individual management of the employees. The leaders are only concerned about organizational productivity and simply ignore the work-life-balance of the employees. The organization treats employees like automata, which leads to dehumanisation. It actually misbalances the work-life-balance of the employees. Hence, it is a problem in the organization.   

As per Parks-Leduc, Feldman and Bardi (2015), the theory of basic human value created by Schwartz suggests safety and collaborative relationship and benevolence for the employee from the management part of an organization for creating healthy workplace. However, in Amazon, there is “come and go” relationship between the employees and employers, which represents lack of harmony and support with organizational management. Hence, it represents organizational issues. Boddy (2014) pointed out that the theories of toxic communications, it can be found that there are high chances of accusation, blaming and secret needs in the organization. In the same thing can be found in Amazon. Even the low level employees are to maintain high level of secrecy by signing lengthy confidentially agreement. It often results in unethical behaviour in the organization.

The major issue lies in Amazon is the issue of work-life-balance. The employees are often treated like machines and they are to work for long hour without having much time for spending with their families. The organization even does not fairly treat with the employees, while they suffer from serious physical illness. It becomes the major source of reduced employee morale. It represents an ethical dilemma in the organization towards the employees. In such situation, the organization should restrict the work hour for the employees. The working hours should be less than 80 hours in a week. Apart from that, the organization should also protect the employees from any kind of accidents in the workplace by developing healthy and secure workplace. While considering Secchi’s theorie, it can be said that the organization should protect the employees from any kind of unethical behaviour occurring in the workplace (Munn 2013). Likewise, Amazon should improve the work-life-balance of the employees and conduct ethical behaviour to them.

Toxic workplace environment and competition among employees

The founder of Amazon has created toxic workplace, where the employees are more inclined to compete with each other regarding their performance. With an intension to be the best performer and getting the appraisal, the employees are working more and more even by avoiding their physical condition. It is actually creating huge work pressure on the employees, which can create high level of employee frustration. Hence, instead of initiating individual performance competition, the organization should foster group dynamic in the workplace. In such workplace, the employees would be able work in collaborative group, which can definitely reduce their work pressure and enhance their work motivation. While considering the Tuckman’s Theory, it has been found that the employees are more productive in performing stage, where there is high level of group cohesiveness (Seck and Helton 2014). Likewise, Amazon can also get high level of employee engagement and productivity through initiating group cohesiveness among the employees.

 

Figure 1: Team Development Stage

(Source: Seck and Helton 2014)

In the case study, it has been found that the female employees are not much promoted in higher position. Hence, Amazon should immediately promote equal opportunity, where both male and female employees will get equal opportunity towards getting organizational privileges and promotions. While considering Equal Opportunity Theory, the subjective analysis of organization demonstrates high level of needs to give equal opportunity to the female employees like the male employees (Malik et al. 2014). Besides, promoting an ethical workplace, it can foster an innovative and productive environment. Likewise, Amazon should immediately promote equal opportunity for the employees towards bringing high level of productivity and innovation.

In Amazon, there is huge lack of employee motivation and engagement. Moreover, low performing employees never get motivation towards enhancing their skills level to increase their productivity. Most of the low performing employees are directly fired from the organization and it is ultimately creating high rate of employee turnover. Hence, instead of directly firing the low performing employees, the organization should provide motivation to the low performing employees towards enhancing their skills. While considering Mintzberg Theory of managerial role, it can be said that the managers should always promote engaging management (Mohammadpour Zarandi et al. 2014). Moreover, the managers of Amazon should bring out positive energy, which exist within the low performing employees towards enhancing their skills for better productivity.

 

Figure 2: Mintzberg Managerial Role Model

(Source: Mohammadpour Zarandi et al. 2014)

From the overall problems of Amazon, it has been found that the major issue of the organization is misbalancing work-life-balance of the employees. Due to unhealthy and toxic workplace and long working hours, the employees are suffering from huge work pressure and getting less time for their families. It is creating high level of employee frustration. Hence, the found of Amazon should immediately promote workplace harmony. Instead of promoting individual performance competition and sabotage, the organization should promote team work in the workplace.

Gender discrimination and low employee motivation

This solution can be linked with Tuckman’s Team Development Theory, where the employees are more engaged to workplace productivity, while there is group cohesiveness among the team members (Seck and Helton 2014). In such workplace harmony and teamwork, the workloads of the employees will be shared among different employees. Therefore, it will definitely reduce the work pressure of the employees and they will definitely be able to maintain their work-life-balance.

Conclusion

While concluding the study, it can be said that Amazon is majorly facing the issue of work-life-balance for its employees. The founder of the organization has initiated toxic workplace, where employees are competing among each other regarding performance level. Moreover, the organization is treating with the employees in mechanistic way. Hence, instead of promoting individualism, the organization should promote group cohesiveness among the employees. The scope for sharing workloads among the team members will definitely reduce the work pressure of the employees. In this way, teamwork and group cohesiveness would foster high level of work-life-balance for the employees.

Reference List

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