Amazon - Relevant Leadership Approaches and HRM Techniques That Address the Challenge and Maximize Potential - Example

Leading and Managing People Name Professor Institution Course Date Leading and Managing People Executive Summary Leading and managing employees has become very difficult in the 21st century due to changes in the global markets and globalization challenges. HRM and leadership experts claim that modern managers now need different techniques and approaches in dealing with the various challenges facing employees and organizations. Therefore, this report investigates leadership approaches and HRM techniques which can assist managers and leaders in dealing with the specific challenges identified in an organization which operates in both bricks and mortar and virtual formats for the purpose of maximizing the potential of employees and therefore the organization. The report focuses on Amazon. Furthermore, the report will discuss Amazon’ leadership and management challenge like workforce diversity within the brick and mortar context and new technology challenge within the context of virtual. The report found out that transformation leadership is the best approach for Amazon in endeavours to maximize the potential of employees and that of the organization. Table of Contents Leading and Managing People 2 Executive Summary 2 Table of Contents 3 1.0 Introduction 4 2.0 Relevant Leadership approaches and HRM techniques that address the challenge and maximize potential 5 2.1 Leadership and HRM techniques to address workplace diversity 5 2.2 Leadership and HRM techniques to address new technology 8 3.0 Recommendations 10 4.0 Conclusion 11 5.0 References 11 1.0 Introduction Globalization and advancement in technology have created new challenges to contemporary managers in their attempts to successfully lead and manage companies in this 21st century (Bolman & Deal 2014). Intensification in globalization has prompted companies to open outlets in other countries in order to serve their clients well. Laudon and Traver (2010, p.37) claimed that even the e-commerce companies have been forced to open physical building and offices in other countries to meet the customer service demands. The global markets present companies with various challenges with key one being cultural diversity which can affect the performance of individual employees hence low performance of the whole organization. On the other hand, online operations are marred with challenge of constant advancement in technology, hence the need for constant training to adopt to change. Amazon is one such company which has recently forced to open physical stores in global markets to enhance its competitive advantage. Brandt (2011, p.13) posited that since its inception in 1994, Amazon has been purely a virtual company dealing with online bookstore and later conducted diversification to offering of DVDs, CDs, Blu-rays video and MP3 streaming and downloads, video games, apparel, jewellery, toys and apparel. The increasing pressure to serve customer properly had prompted Amazon to open physical customer care centers, warehouse and stores in different markets of operation (Stone, 2013, p.65). However, the company is faced with cultural diversity and the need to always improve its virtual operation due to the constant advancement in technology industry. Therefore, this report investigates leadership approaches and HRM techniques which can assist in dealing with these specific challenges for the purpose of maximizing the potential of employees and therefore the organization. 2.0 Relevant Leadership approaches and HRM techniques that address the challenge and maximize potential 2.1 Leadership and HRM techniques to address workplace diversity Over the years, Amazon has been operating as a virtual company with no offices across the globe but just website where customers order products and services such as books (Brandt, 2011, p.7). However, due to competition from companies which offer both bricks and mortar and virtual process such as Ebay, Best Buy, Walmart, Big Lots, Family Dollar, Staples, Google, Apple and Sears among other, Amazon has been forced to also set customer services center, and warehouse and stores to meet the needs of customers. Amazon has opened customer service centers in the US, India, South Africa, China, Japan, Costa Rica, Italy, Germany, Poland and UK among others (Stone, 2013, p.38). The company sends its staff to work in others countries to so as to promote its values and policies, However, the employees face cultural diversity which affect their performance hence may not realize organizational and personal goals in future. Some of the differences Amazon employees face are cultural, generational, gender and religious. Ewoh (2013, p.108) argued that in a business environment, cultural differences normally manifest itself in language, communication and negotiations. Language difference does not affect Amazon employees, but some aspects of communication do. This happens due to the differences in regional culture between US where the Amazon is headquartered and its world customer care centers particularly in China, Japan, India and Morocco. An example is cited by Ralston et al (2008, p.12) where they stated that the Chinese employees often greet one another with personal questions as a means of showing concerns and considerations for others unlike the American employees who find it as respectful and decent not to interfere in individual’s affair. Gender differences also affect Amazon global operations (Stone 2013, p.78). Jonsen et al. (2010, p.552) claimed that there has been stereotype in that some roles like working overnight are reserved just for men hence keeping women out of the workplace. According to Vanderbroeck (2010, p.766), the situation is common in Eastern culture where women are left to do home chores. The culture has made women in Asia not to apply for customer care center jobs. Similarly, perception that women should not do some jobs has also led to gender inequality and less diversity at workplace (Jonsen et al., 2010, p.555). Technology which forms the core business of process of Amazon is still considered a man’s area of profession hence not women can be found to work in the field. Amazon employees many people to assist in software development but still not many women can be found in this area of work. Vanderbroeck (2010, p.768) argued that in the current society, people hold highly companies which employ women and see it as a form of empowerment. There is also a notion that women are better in some roles like customer service than men. Therefore, companies which employs women have competitive advantage based on this reasoning. Management experts have found transformational leadership effective enough to deal with challenge of diversity at the workplace. Burns (2003, p.20) defined transformational as a collection of particular behaviors, which is a continuing process where the leader and followers raise each other to a higher degree of motivation and morality. This leadership approach is needed for addressing diversity because in a company where employees face such challenge, their morale and motivation tend to be low hence reducing their performance. Lussier and Achua (2004, p.48) contended that transformational leaders normally have various leadership traits as depicted in the Big Five Model of Personality which help have a good relationship with followers and also which help steer the employees to success despite global market challenges. Uhl-Bien et al., (2014, p.84) argued that one of such trait is transformational leaders are normally agreeable or sociable; in other words they relate well with followers. The sociable nature of transformational leaders make the social socially motivated hence they try to find close relationships within the group setting (Uhl-Bien et al., 2014, p.84). Motivation is part of talent management which can help managers maximize influence on employees. Relating well with employees means Amazon managers can have interpersonal communication with them to know what affect their performance. This argument satisfies the Leader–member exchange theory (LMX) which holds that leaders and followers need to engage each other in order to realize greater outcome in terms of organizational and personal goals (Uhl-Bien et al., 2014, p.78). Transformational leaders are always about change, and personal talks with employees can change employees’ perception and attitude towards other cultures. The transformational leaders can use strategic human resource management technique like training and development to address diversity at the workplace. Teena and Sanjay (2014, p.36) argued that on-job training and experiences present the staff with learning opportunity to overcome various challenges affecting them and to have the capability to cope with them. Training and development can also encompass cultural diversity hence helping Amazon staff to develop cultural intelligence and awareness to help them accommodate different views and perspectives (Stone 2013, p. 67). Transformational leaders are well adjusted and always seek for change hence can help Amazon employees through training to adjust their emotional stability and influence them to change. The situation is even made positive due to the fact that Transformational leaders have travelled widely and are open to experience hence can use their cultural experience to teach employees about culture in the new markets (Carter, 2009, p.144). Teena and Sanjay (2014, p.36) opined that strategic recruitment technique is another approach transformation leaders can use to manage talent in the global market so as to maximize the potential of employees and therefore the organization. As a company which operates in global markets and now has physical offices in other countries, Amazon recruitment ought not to focus on individual-local organization fit, but to individual-global organization fit. Transformational leaders usually understand the market needs, they design job roles which match these needs (Brauns 2013, p. 1406). Similarly, they go ahead and recruitment the right candidates with the best fit for the jobs. In most cases, such candidates are motivated and flexible and can perform in global markets. 2.2 Leadership and HRM techniques to address new technology The current times have been marked by advancement in technology prompting companies to seek leadership approaches and HRM techniques which can sustain changes in the business environment. Laudon and Traver (2010, p.25) argued that most of the aspects which are often affected by the current development in technology are the companies which operate in the technology industry and employees. Amazon Inc has been facing challenges of competition from other virtual companies such as Ebay and Bestbuy prompted by technology advancement (Brandt, 2011, p.47). Technology means that things change quite often thus the need to change to be up to date with trend in the market. Such challenge can be addressed by leadership approaches and HRM techniques such as group formation, training and development and innovation. Transformation leadership again is required for companies which operates the virtual process. The argument is based on the fact that transformational leadership theory which hold that this style of leadership normally seeks change. PricewaterhouseCoopers (2008) asserted that transformational leaders have the agility and a competence which is highly required for business. The rate of change in the e-commerce field is so rapid and requires organizations to be flexible and more nimble. Agility is a competence which enables a leader to spot the change in business environment from far, predict the outcome, and lead in creating strategies to tackle ever changing market demands to maximize the potential of the organization (PricewaterhouseCoopers 2008). Creating a culture of innovation is one way an organization can address the challenge of new technology. Stone (2013, p.78) affirmed that Jeff Bezos, the founder and CEO of Amazon has tried to create culture of innovation by creating software development centers in most of its outlets across the world. However, most of the software development takes place at the headquarters in Settle. The process of creating an innovation culture starts with having a change minded leader (Lopez 2014, p.103). It’s also involves recruiting candidates who are innovative and have aspiration for technology and change. Another leadership approach to addressing challenge of new technology is forming groups at the organization. Team environment creates a platform for generation of new ideas to produce new products (Webb 2007, p.55). Team setting is therefore very important in the technology field because it enables a company to come up with new software which outshines those companies which are already in the market. Bass and Riggio (2006, p.23) posited that transformation leaders normally encourage setting because they understand it is where members draw support to complete projects. Training and development are other leadership approach and HRM technique which can be used to address the new technology (Teena & Sanjay 2014, p.38). Training help employees reduce weaknesses on matters new technology and enhance their capability in operating new technology device and software. Amazon software may have knowledge about the new software they developed, but is cannot be true with customer service representative. Hence the leader must always initiate training and development to make all the employees be at par with the policies and operations of the company (Teena & Sanjay, S 2014, p.38). 3.0 Recommendations Despite providing few leadership approaches and HRM techniques which Amazon Inc. can use to address in the specific challenges such as workplace diversity and new technology there are many other leadership approaches and HRM techniques which can be used, and they are; Transactional leadership Transactional leadership is a job oriented approach and can be used to set up strategies which ensure that goals are achieved. Transactional leadership highly uses rewards to achieve intended goals. The approach is good for employees’ motivation and performance. Research and development Research and development is an effective way for ensuring the training objectives are achieved. Training without research cannot make the company meet new demands in the market, hence a leader must combine these two approaches. 4.0 Conclusion Leadership and management has been found to be one of the most debated in this century among business theorists, scholars, managers, leaders and students of business. Despite the various theories being revealed and recommended for managers, change in business environment has made some companies like Amazon which operates both bricks and mortar and virtual formats still struggle with leadership approaches and HRM technique to use address challenges of diversity and new technology. However, a review of various literatures has found out transformation leadership, creation of innovation culture, training and development as the best way to deal with these challenges. 5.0 References Bass, B. M & Riggio, R. E 2006, Transformational leadership (2nd ed.), Lawrence Erlbaum, Mahwah, New Jersey. Brauns, M 2013, Aligning Strategic Human Resource Management to Human Resources, Performance and Reward, International Business & Economics Research Journal, Vol.12, No.11, pp,1405-1410. Brandt, R.L 2011, One Click: Jeff Bezos and the Rise of Amazon.com, Portfolio Penguin, New York. Bolman, L & Deal, T 2014, Leadership and management, Christian Youth Work in Theory and Practice: A Handbook, SCM Press. Burns, J.M 2003, Transforming Leadership: The Pursuit of Happiness 1st ed, Atlantic Monthly Press. Carter, T 2009, Leadership and Management Performance, Journal of Hospital Marketing & Public Relations, Vol.19, No.2, pp. 142 – 147. Ewoh, AI.E 2013, Managing and Valuing Diversity: Challenges to Public Managers in the 21st Century, Public Personnel Management Vol.42, No.2, p.107–122. Jonsen et al. 2010, Gender differences in leadership – believing is seeing: implications for managing diversity, Equality, Diversity and Inclusion Journal, Vol.29, No.6, p. 549 – 572 Laudon, K.C & Traver, C.G 2010, E-Commerce: Business, Technology, Society’, 5th Ed, Pearson International Edition, Prentice Hall. Lussier, R & Achua, C 2004, Leadership Theory, Application, Skill Development, Southwestern, Minnesota. Lopez, R 2014, The Relationship between Leadership and Management: Instructional Approaches and its Connections to Organizational Growth, Journal of Business Studies Quarterly, Vol.6, No.1, pp.98-112. PricewaterhouseCoopers 2008, How leadership must change to meet the future, PricewaterhouseCoopers. Ralston, D.A, Holt, D.H, Terpstra, R.H & Cheng, Y.K 2008, The impact of national culture and economic ideology on managerial work values: a study of the United States, Russia, Japan, and China, Journal of International Business Studies, Vol. 28, No.1, pp. 8–26. 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