Amazon's Human Resource Management Practice - Case Study Example

Amazons HRM practice Overview In this age of aggressiveness, human resource is the most important assets of an organization. This is because it acts as the catalyst that may help an organization to enhance its portfolio and sustainability in the market among other rival players. Moreover, it is the human resource of the organization that helps it to introduce varied types of inventive product lines so as to cope up with the changing taste and preferences of the customers and to retain its profitability. However, in order to enhance their inner morale and devotion of the employees towards their tasks, the management need to align the human resource policies as per their interests. Only then, both employee interests as well as organizational development might take place resulting in amplification of its total revenue and profit margin. Similar scenario is observed in case of Amazon. In order to improve its consistency and market share, the online book-seller decided to expand into overseas markets with diverse product lines. However, in order to enhance the demand of its products lines, it tried to implement varied types of training and developmental programs. By implementing these programs, the talents and skills of the employees might be enhanced and it might help in improvement of organizational objectives. This essay mainly tries to highlights the two HR aspects within the organization and the ways by which, these aspects are affected by the change. Apart from this, it also highlights the HR practices followed along with the relevant theories. Discussion Identification of the two aspects of HR In this age, maximum extent of the organizations desire to enhance the profitability and brand image in the market as compared to others. This is done in order to enhance its competitive advantage and sustainability. Similarly, the international electronic commerce company of Amazon also desired to improve its demand and total online sales in the market as compared to Barnes & Noble, its biggest online competitor. However, in order to fulfil its desire, the company tried to penetrate into varied foreign markets such as Canada, Germany, United Kingdom, Italy, China and Japan with the help of separate websites. However, soon the founder and chief executive officer (CEO) of the company, Mr. Jeff Bezos tried to craft human resource strategies, keeping in mind the objectives of the organization. Only then, the employees of the company of Amazon might get motivated towards the assigned tasks that may improve the profitability and quality. Moreover, incorporation of the organizational goals with the HRM practices might surely present outstanding results and achievements. Efficient and appropriate HRM policies might not only enhance the competitive advantage of the company but also its distinctiveness and uniqueness in the market among others. However, in order to achieve the organizational objectives, the managers of HRM try to focus more attention over recruitment and selection processes. So that the best skilled and talented employees might be recruited within the company in order to enhance its dominance to present inventive products to its customers (Filson, 2004, pp. 331-343). Apart from this, the managers of HRM, also tries to implement varied types of training and development programs in order to enhance the inner skills and talents of the existing employees. So that, these existing employees might get motivated towards their assigned job responsibilities and retention ratio might get enhanced. Furthermore, such type of training programs might not only enhance the level of performance and devotion of the employees but also their quality of work may get improved. Therefore, the level of relationship among the employees and the management of the company may get improved thereby enhancing their reliability and trust as well (Finnegan, 2010, pp. 786-798). Other than this, as the company penetrated in new foreign markets like Japan, Germany, United Kingdom and many others, the employees had to face varied types of problems due to diverse cultures. However, in order to resolve it, varied types of cultural workshops are organised so as highlight the negative impacts of multiculturism. Along with negative impacts, these workshops also highlighted the benefits of unity and cooperation. By doing so, the company of Amazon became extremely successful in reducing the problems of diverse workforces that amplified their desire to work in a group. Only then, the company might become successful in developing varied types of new products in a foreign market that may improve its brand image and position among other rival players. By doing so, the rate of business challenges and threats might get reduced that may improve its opportunities and inner strengths (Guillén & García-Canal, 2012). Therefore, it might be clearly stated that HRM strategies need to be implemented in such a way that it proves advantages for both the employees as well as the organization. Only then, the implemented HRM policies might surely help the company to cope up with any sort of change or crisis, as mentioned in case of Amazon. Discuss the ways by which the HR aspects are affected by Crisis In order to improve the competitive advantage, the company of Amazon expanded into new markets like United Kingdom, Italy, Germany and Canada (Chakrabarti & Scholnik, 2002, pp. 85-104) However, in order to improve its dominance in these countries, the company recruited numerous skilled and talented staffs. Recruitment and selection of staffs created various problems due to difference in cultural dimensions as stated by Geert Hofstede. According to Hofstede, the level of the dimension of individualism with the citizens of the countries of both United Kingdom and Italy is extremely high. The citizens of both the countries try to work individually and do not prefer to work in groups. Due to which, the rate of interpersonal conflicts is quite high among the employees (Hofstede, 2014). Moreover, as the employees of both the countries offer more preference over the dimension of masculinity so they do not prefer the dominance of female employees (Hofstede, 2014). This is also another important reason for which, varied types of conflicts rises within the employees of diverse culture. Apart from this, as the employees of Italy offer high preference over the dimension of uncertainty avoidance as compared to United Kingdom. So, it creates conflicting situations among the employees in the company of Amazon. As a result of which, the level of integrity and cooperation among the employees gets hindered that reduces their desire and morale to fulfil the assigned tasks. Furthermore, the employees of United Kingdom tried to offer high value over the dimension of indulgence whereas the employees or citizens of Italy are entirely different. The citizens of Italy do not prefer to get involved over the duties and activities of others (Hofstede, 2014). This means that they do not try to help or cooperate with other employees of an organization. As a result, the citizens of Italy do not believe in cooperation or unity. Due to which, the rate of conflicts within the employees of diverse culture is extremely high in Amazon, after entering new markets. However, in order to reduce such type of cultural conflicts among the employees, the management decided to implement varied types of training programs and workshops in order to make the employees aware about the pitfalls of such conflicts. Therefore, by implementing varied types of trainings programs, the level of conflicts among the employees reduced to a significant extent that improved their interest and dedication towards work (Snell & Bohlander, 2010, pp. 656-667). As a result, the employees became successful to work uniformly so as to enhance its image in the segment of CD’s DVD, computer software, video games and many others. Apart from this, the company of Amazon diversified to a new segment, like CD, DVD, MP3 download, computer software, video games and many others. Amazon diversified to this segment, from online book retailing is mainly to improve its competitive advantage and supremacy in the market. Along with this, the company desired to improve its profitability and demand in the market as compared to many other rival players (Snell & Bohlander, 2010, pp. 676-687). However, in order to enhance its inner skills and talents of the employees, the company of Amazon desired to implement varied types of training and developmental programs (Schneier, 1994, pp. 434-454). By doing so, the motivation and devotion towards the assigned job responsibilities enhances that improves their performance. As a result, the capabilities and abilities of the employees gets enhanced that increases the profitability and portfolio of the company of Amazon in the market. Other than these, the company of Amazon also desires to recruit, highly experienced and skilled individual so as to introduce varied types of inventive products and services to the customers. By doings so, Amazon might easily cope up with the changing desires of the customers that may improve its reliability and loyalty within their minds. As a result, such type of inventions might increase its range of customers thereby amplifying its image and position in the foreign markets as compared to many other rival contenders. Furthermore, recruitment of highly experienced staffs might also offer the opportunity of the existing employees to enhance their level of knowledge and skills. This might prove effective for the existing employees to enhance their career prospects thereby reducing the intensity of attritions. Thus, it might be clearly stated that, proper acceptance of different cultural dimensions and recruitment of experienced staffs within the organization, might prove effective in enhancing its dominance and productivity in the market. Implication of wider HRM practices with theories and evidences in Amazon After analysing the above mentioned information, it might be analysed that, human resource is the most important cornerstone of an organization. Without which, n organization may not fulfil its objectives or goals in long run. Other than this, it is the human resources of an organization that helps in development of varied types of inventive products and services so s to satisfy the changing needs of the customers. Therefore, it’s extremely essential to develop or implement the HRM policies in such a way so that the rate of retention of the employees might get enhanced. Moreover, in order to enhance the rate of retention of the employees, the HRM policies need to fulfil both, basic and psychological needs as well as self-fulfilment needs. The basic needs of Maslow Hierarchy comprise of physiological needs like food, water, shelter, warmth etc as well as security within the working environment or safety needs. Psychological needs comprises of the intention to develop intimate relationships and belongingness within the colleagues so as to enhance their dedication and cooperation among them (Deb, 2006, pp. 223-245). Such type of rapport might enhance their level of performance and motivation towards work thereby amplifying their prestige and dominance within the organization. Finally, after fulfilment of the basic and psychological needs, n individual desires to fulfil his or her self actualisation needs. If all these needs get fulfilled within n organization, then the rate of motivation of the employees gets enhanced that amplifies his level of performance and dedication towards work (Compton & et. al. 2009, pp. 545-556). Similar scenario took place within the company of Amazon. The company of Amazon diversified to different segment such as CD, DVD, computer software and video games and many others. However, in order to improve the inner skills, the company recruited highly experienced and talented staffs (Beatty & Schneier, 1997, pp. 421-432). By doing so, the inner skills and knowledge levels of the existing employees might get enhanced and their level of dedication towards the assigned duties might also get improved. Apart from this, due to proper coordination and relationship among the employees, the rate of confidence and commitment towards the duties get enhanced that helps in improvement of the productivity and profitability of the employees (Beck, 2003, pp. 434-445) as well as the organization. Similarly, training and development also helped in improvement of the skills and talents that increased their career opportunities and organizational effectiveness in the market. This is because; with the help of training, the employees might become capable to present varied types of inventive products and services that may increase the customer base and net income of the organization in the market (Snell & Bohlander, 2010, pp. 24-25). Other than Maslow Hierarchy of Needs, another theory that clearly specifies that motivation within the workforces of the organization is directed related with fulfilment of its needs is ERG or existence, relatedness, and growth theory (Brown, 2007, pp. 323-334). Keeping this fact in mind, the CEO of Amazon, Mr. Bezos implemented the HRM strategies. So that, the diverse needs of the employees might get fulfilled that may lead to organizational up-liftment or improvement. Only then, the company of Amazon might enhance its profit margin and customer bases as compared to other rival players in the foreign markets. Moreover, if the employees get fulfilled with the HRM policies then their rate of devotion towards the work might get increased that may enhance its dominance in other segments as well such as CD, DVD, video games and others. Apart from this, if the employees remain happy and contended with the policies of the organization, then their rate of retention might get enhanced. This is extremely essential for an organization, operation in this competitive era, to retain the experienced employees so as to attain qualitative work. Due to these reasons, the company of Amazon implemented HRM policies, keeping in mind the requirements of the employees, so as to retain them for longer period of time (Swart & et. al. 2012, pp. 123-134) Therefore, it might be clearly revealed that, it is the HRM policies that help an organization to grow and prosper. This means, the HRM policies need to be implemented or developed after active discussion with the employees. Only then, the management might become able to know their needs and requirements and might get the opportunity to fulfil them. This might prove effective for the organization to satisfy the employees and motivate them towards the assigned duties (Adair, 2010, pp. 232-243). As a result, the organization might enhance its position and competitive advantage in the market among others. References Adair, J. 2010. Effective Motivation: How to Get the Best Results From Everyone. New York: Cengage Learning. Beatty, R. W. & Schneier, C. E. 1997. 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Human Resource Development - Page 79. New York: Cengage Learning. Read More