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Amazon Organizational Culture Features
According to Jeff Bezos, he said that every meeting should be small enough that attenders can fed with two pizzas. This shows that, smaller team can produce better productivity of performance (Choi, 2013). To maintain a capable workforce, Amazon must reinforce its organizational culture to shape the development of human resources for long-term competitive advantages. It also pushes employees to explore their ideas and take risks to seek new opportunities. Amazon is promoting boldness toward its employees. Amazon’s employees have motivated to take risks and create innovative ideas in order to improve the e-commerce business. Also, Amazon facilitates openness toward new ideas based on an organizational diversity policy to solve the problem.
Apart from this, the customer-centricity is the mission statement of Amazon and highlights the centrality of customers in its business. For instance, Amazon has built up the employees more emphasize on customers’ satisfactions. It continuously strives to identify trends and changes in customers’ preferences and provides those tastes in its digital retail and related services. In a nutshell, Amazon maintained its effectiveness to fulfil customer’s needs and wants as the e-commerce business expand.
Leadership Style
Amazon’s leadership style has been classified as pragmatist. This meant that, it sets high standards and expects all employees can target all the achievement made by Amazon. It has applied the employee-centered leaders in University of Michigan so that they able to make better decision for improving Amazon. Customer obsession is the leader set customers as priority and work behind based on customer is king. It has more concentrate on clients and create customer’s loyalty in order to enhance the positive experience for its customers. Not only that, Amazon has encouraged group member to learn and be curious at everything to improve themselves and knowledges. They always want to know about new possibilities and act to explore them. In addition, leaders are obligated to respectfully challenge decision when they disagree, even though it is uncomfortable and exhausting. They have to move forward and think positively to accept the decision and commit wholly (Amazon.com Inc, 2020).
Motivational Style
Jeff Bezos, founder of Amazon.com Inc motivates Amazon employees by providing a unique compensation that give a chance to employees to learn in professional skills for the workplace. As we can know that, Amazon Career Choice is an innovative Amazon program uniquely designed to upskill employees who are interested in pursuing future outside of Amazon. It helps Amazon employee pre-pays 95% of the cost of tuition, textbooks, and related fees so the employees can focus on their studies and not the expense. Jeff Bezos expects all the employees can engage in works and develop demand skills for professions of the future. Amazon has applied the Herzberg’s two-factor theory which is hygiene factor.
Human Resources Management Practices
Human resources management practices are a system that is composed by attract, retain and motivate employees to achieve its goal efficiently and has a well performance. Amazon has adopted several practices in matching model which are recruiting, selecting and training programs for illuminating goal and enhancing the employee expectations. The company has developed a retraining program called Pivot designed for under-performing employees have an opportunity to improve their performance. Pivot delegates such employees to counselling and in-house career counselors who assist them to manage their jobs and career better as the jobs become more complex will lead to high pressure on the employees. Thus, Amazon has compensated by using benefits such as employee discount, health benefits and a mix of wages.
Change and Innovation Process
Amazon.com Inc has always focusing on change and innovation by offering unique products. The company has produced a small hand-held electronic device for reading books which called Kindle. It helps readers to have a fast, convenient and affordable way to purchase the books and medium surged forward. Not only that, readers can download the PDFs of any sort of document, which makes this an ideal way of reading for work, study or collect a large number of books on Kindle, e-books. It designed with the special high-contrast screen which allowed people to read even in bright sunshine without glare, built-in wi-fi connection, lightweight and strong protection security. Instead of tough payment methods, the company has offered one-click purchases for placing an order. It will automatically charge to the payment methods and ship to the address. Both of changes make customers more convenience.
In a nutshell, Amazon’s employees has the empowerment to innovate the products and they are creative to catch the idea outlines the vision for their product idea with a theoretical press release to go with it, and writes a Frequently Asked Questions (FAQ) that explains the customer benefits and answer potential customer questions. So, a team of innovators at Amazon evaluates the idea, and get some funding to invest in market. For example, Kindle, Prime Now, Amazon Go, Alexa have created from this innovation process.
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