Employee Dissatisfaction Issue At Amazon

Word Count [3000]

 Table of Contents
INTRODUCTION.......................................................................................................................................3
1.1 Company Background.................................................................................................................3
1.2 Description/Definition of the Problem.........................................................................................3
1.3 Justification of the Problem Significance and OB Perspective....................................................4
1.4 The Aim and Objectives of Report..............................................................................................5
2.0 ANALYSIS AND DISCUSSIONS 2000...............................................................................................5
2.1 Analysis of the Model/Method Used by the Company......................................................................5
2.1.1 Identification and Explanation of the Approach Used................................................................5
2.1.2 Suitability and Appropriateness of the Approach.......................................................................6
2.1.3 Strengths and Limitations of the Approach.................................................................................6
2.1.4 Effectiveness of the Approach....................................................................................................7
2.2 Analysis of the Alternative Approaches.............................................................................................7
2.2.1 Alternative Approach 1...................................................................................................................7
2.2.1.1 Identification and Explanation of the Approach Used.............................................................7
2.2.1.2 Suitability and Appropriateness of the Approach....................................................................7
2.2.1.3 Strengths and Limitations of the Approach.............................................................................8
2.2.2 Alternative Approach 2...................................................................................................................8
2.2.2.1 Identification and Explanation of the Approach..........................................................................8
2.2.2.2 Suitability and Appropriateness of the Approach........................................................................8
2.2.2.3 Strengths and Limitations of the Approach.................................................................................8
3.0 CONCLUSIONS 300.................................................................................................................................9
4.0 RECOMMENDATIONS 500.....................................................................................................................9
4.1 Evaluation of the Approaches............................................................................................................9
4.2 Implementation Plan for the Best Approach...................................................................................10
References.................................................................................................................................................10
INTRODUCTION

1.1 Company Background

Amazon is the e-commerce giant that is based in USA. It is one of the largest technology based
companies of the world and the second largest employer in America. The owner of Amazon, Jeff
Besoz who laid the foundation of company was ranked as the richest entrepreneur of the world as
per the Forbes Magazine in 2018 (Solanki, 2019). The company offers wide range of products
and services via its websites. The products offered by company include merchandise and content
that company purchase for the purpose of resale. Besides this, company also manufactures and
sells electronic devices. (Reuters, 2022).

1.2 Description of the Problem

Amazon is a customer centric organization and is focused to meet the changing needs of its
customers. But in doing so company violates the basic rights of its employees. The employees
working in Amazon are given tough targets and high workload that affect their work life balance.
Jeff is concerned to provide quality customer services and expects the same from its employees
that exert pressure on them leading to stress. Moreover, there exists unfair evaluation process
that has demotivated the employees working in the company. It has been identified as per the
survey of 2013 that median employee turnover at Amazon was only one year and only 15% of its
employees are working in company for over five years. As per New York Times, the workers at
Amazon are forced to work for late hours even at weekends and holidays (ICMR, 2021). Thus,
this made the organizational culture of Amazon tiring and stressing leading to low employee
morale and high turnover.

Moreover, the management of company seems insensitive and harsh for its employees. The
company uses self-reinforcing management system and employs psychological tools to attract
employees and encourage them to work towards the achievements. But the targets are set so high
that it makes the tasks never ending and people have to sacrifice their personal lives just to meet
the company’s target and to satisfy its customers. There exists almost no benefit for the corporate
employees. Though managers receive attractive pays but this does not exist for its employees.
Instead the employees need to pay for their phones, leisure and travelling. Besides this, there
exist a rating system for each employee and the people with worst rating are fired. Company
used this system to enhance the competitiveness and productivity within the organization but it
leads to unfairness as every other person tries to surpass the other (Ivy Panda, 2021).

1.3 Justification of the Problem Significance and OB Perspective

The problem discussed above is of huge significance as this has impacted the employees of
Amazon that are the key assets of an organization. The success of an organization depends on its
employee and low morale and satisfaction level of its employees may adversely impact the
corporate performance (Gabčanová, 2011). Besides this, Organizational behavior is the study of
behavior of people working in the organization that includes its employees (Heinitz et al, 2018).
Thus, the issue highlighted is related to OB as the employees who constitute the workforce of
company are impacted due to organizational culture practiced in Amazon.

1.4 The Aim and Objectives of Report

The current report is proposed to discuss the organizational behavior issue faced by one of the
leading technology based companies of world that is Amazon. In this report, the approach and
method adopted by company to cater the issue is discussed along with two alternative
approaches. Besides this, the report also provides recommendation about the implementation of
alternative approaches.

2.0 ANALYSIS AND DISCUSSIONS

2.1 Analysis of the Model Used by the Company

2.1.1 Identification and Explanation of the Approach Used

As per the review of published information about the Amazon, it is found that company has
received multiple complaints regarding its relationship with its employees. This may impact the
ESG score of firm as well as expose the firm to legal action. Therefore, Jeff realized to modify
its corporate culture in order to enhance the employee morale and satisfaction level
(Wasserman, 2021). In 2015, the company started an initiative to conduct feedback of its
employees on regular basis about the work environment to assure that work environment is
productive and its does not affect work life balance of people. As per the company website,
company considers that consistent, open and honest communication with its employees will
assist the firm to improve its workplace environment. The company is open to listen from its
employees (Amazon, 2022). This denotes that company is enhancing employee engagement
within the corporate decision making. Though, there exist no detail of process and model
adopted by firm to enhance employee motivation and encourage their participation in the firm.
But based on the limited information it can be said that company introduced The Five Stage
Model.

Five Stage Model comprised of five stages that enhance the employee participation and these
include; forming, storming, norming, performing and adjourning (Charles, 2019). The first stage
is forming when the teams are formed and every team member get to know each other. Another
stage is storming when every team member contributes their ideas in the project. In this stage,
team members learn about each other and came to know about the strengths and weaknesses of
each team member. After this, a hierarchy of group is proposed that is referred as norming stage.
Each team member know their role and responsibilities at the project. The forth step is
performing at which the team members are fully functional. The fifth step is adjourning at which
the activities are wrapped up (Robbins & Judge, 2013; Last, 2021).

The available information is insufficient to support that company completely followed this model
to resolve the OB issue. But the regular feedback from employees denote that company must be
making efforts to provide them better working environment by collaborating with them that can
be achieved by some of the steps mentioned in this model.

2.1.2 Suitability and Appropriateness of the Approach

The Five Stage Model is suitable to resolve the issue Amazon is facing. The major problem is
that the firm is following autocratic leadership style where all decisions are made by the leader
with no involvement of employees. It is due to this reason; leader is incapable to determine the
needs and issues of its employees and workers (Chukwusa, 2019). By employing five stage
models, company can effectively counter the issues faced by its employees and engage them in
decision making that is in bets interest of firm and for the employees as well.

2.1.3 Strengths and Limitations of the Approach

Five stage models have certain strengths and weaknesses. The major strength of this model is
that it not only forms teams but also engage them in storming so that their conflicts can be
resolved and there should be team leader who can communicate their issues with the top
management. Thus, firms following this model are capable to communicate with their
management and engage their employees in decision making. Furthermore, this model enables
the leader to understand the primary and secondary tension that the team is facing. That is the
major source of issue can be identified so that appropriate decision can be made on timely
manner to overcome this issue. Moreover, this model also strengthens the relationship between
employees and leads to their better productivity (Kobiruzzaman, 2021).

However, by engaging the employees, the effectiveness of decision making is affected. Besides
this, it is also believed that employee engagement may affect the authority and control of leader.
Moreover, maintaining five different steps is often difficult for the firm (Kobiruzzaman, 2021).
But at the same time, it enables the firm to get to know about the issues that employees are
facing so that they can be resolved in timely manner.

2.1.4 Effectiveness of the Approach

This approach would be effective for Amazon to resolve OB issues as the employees of Amazon
are highly dissatisfied due to extra burden on them to meet the customer needs. By this approach,
the feedback can be gathered from the employees about how well they are working towards the
customers and whether the work environment provided to labors are favorable for them or not.
Thus, the issue that leading to high turnover within the firm can be controlled by adopting five
stage models.

2.2 Analysis of the Alternative Approaches

2.2.1 Alternative Approach 1

2.2.1.1 Identification and Explanation of the Approach Used

The alternative model that can be adopted by Amazon to cater this OB issue is Model of
Organizational Justice that supports that justice should be provided to every employee working
within the organization. The justice should be provided in terms of pay, remuneration, growth
and career development. That is managers as well as labors must be given equal opportunities to
grow their career as well as wages. Besides this, there should be work place safety and work life
balance for every employee (Cropanzano & Molina, 2015). The model of justice focuses on three
main types of justice that is; distributive justice that is there should be fairness in outcome that is
pay and income, procedural justice that is equal processes and environment should be provided
to all people working in the organization. The third aspect is interactional justice that is every
one working within the organization must be given equal respect and dignity (Robbins & Judge,
2013).

2.2.1.2 Suitability and Appropriateness of the Approach

The application of model of organizational justice would be more suitable for Amazon to resolve
their OB issues due to the reason the employees consider that there are mistreated within the
organization. The labors of company have claimed that income and pay growth is for managers
and not for labor class. Besides this, there is no fair evaluation system. Thus, by introducing this
model, the fairness and justice can be assured within the firm.

2.2.1.3 Strengths and Limitations of the Approach

This approach has certain weaknesses as well as limitations. One of the major strengths of this
model is that this implements fairness and justice within the organization that is every person
working within the organization are given equal opportunities of growth, receives fair pay and
are provided with fair working environment. This eventually improves the performance of
employees as they feel satisfied within the firm (Woldearegay & Feng, 2021). However, this
makes it difficult for the firm to implement as all people cannot be given equal facilities due to
their qualification and expertise. Some jobs demand risky working condition and therefore
people must be exposed to certain threats and security issues (Sheeraz et al, 2021). But even
tough, this model assures that company treats its employees equally.

2.2.2 Alternative Approach 2

2.2.2.1 Identification and Explanation of the Approach

Another approach that could be suggested for Amazon is The Fiedler Model that supports that
not only one leadership style is suitable for every business. Instead leadership style needs to be
changed based on changing environment and business conditions (Robbins & Judge, 2013;
Ayman et al, 1995). As per the analysis of Amazon, it is found that autocratic leadership style is
practiced in Amazon where Jeff led the organization and make customer centric decisions with
no concern for employees (Solanki, 2019). Thus, this leads to employee dissatisfaction and low
morale. Therefore, it is appropriate for the firm to adopt The Fiedler Model. As per this model,
there exist three steps to bring change in organizational leadership. The first step is to identify
your leadership style, then analyze the current situation and then modify the leadership style
according to situation (Kuhn, 2007).

Amazon needs to modify its autocratic leadership style into transformational leadership to cater
the OB issue. Transformational leaders are the leaders that transform the team. Transformational
leaders sacrifice their personal interest for the good of organization and cater the needs of its
subordinates as well (Robbins & Judge, 2013; Khan et al, 2020). Thus, rather than following
autocratic leadership style, Amazon must adopt transformational leadership and inspire its
workers rather than imposing orders on them and exert extra pressure on them (Lai et al, 2020).

2.2.2.2 Suitability and Appropriateness of the Approach

This approach will be more suitable for Amazon to resolve its current OB issues. As identified
by the review of issues, the firm practices autocratic leadership style where all decision making
power and control is concentrated to Jeff and his main concern is on customers (Solanki, 2019).
Though customers are the valuable stakeholders of the firm but it is not fair to violate the basic
rights of employees and burden them to meet the needs of customers. Therefore, it is suitable for
the firm to adopt Fiedler Model and implement transformational leadership rather than autocratic
leadership in the firm.

2.2.2.3 Strengths and Limitations of the Approach

The Fiedler Model has certain strengths that include that leaders may modify their leadership
style as per the business requirement. That is similar leadership style is not suitable under
different circumstance and different businesses. Some business may favor autocratic style while
others might underperform under this leadership style. Thus, this model supports that leadership
must adjust according to the situation so that appropriate leadership style may be adopted.
Changing leadership style enables to firm to improve its performance. However, it is not easy for
firm to change its leadership. Every leader has some unique styles that cannot be changed that
make this model difficult to implement (Leadershipahoy, 2021).

3.0 CONCLUSIONS
By the analysis of organizational behavior problem identified for Amazon it is found that
leadership of Amazon is strict whose major focus is on customers and in making customer’s
satisfied they overburden its employees that is not fair. Employees are given extra tasks and are
forced to work extra hours that affect their work life balance. The company uses psychological
tools that cause emotional stress among employees and they are required to work extra hours
even at weekends and holidays. Besides this, employees are not given any benefit, fair growth
opportunities instead they need to pay for their leisure and travelling. Moreover, the company
has unfair rating system. Though this was introduced to increase competition within the firm but
it leads to unfairness treatment of different employees. It is therefore, there exists high turnover
in Amazon and low retention rate. To overcome this OB issue, the company has started taking
feedback from its employees on regular basis to get to know about thee work environment within
the firm. Thus, this indicates that company has introduced five stage models as company is
engaging its employees in key activities of firm. However, it is optimal for the firm to adopt
model of organizational justice to assure that employees are treated fairly and given distributive,
procedural and interactive justice within the organization. Besides this, it is also optimal for the
firm to adopt Fiedler Model and make changes in its leadership style according to the situation
and issues that firm is facing. That is firm should change its leadership style from autocratic to
transformational style as the transformational leader has high influence on people and have more
concern for its employees than for themselves.

4.0 RECOMMENDATIONS
The recommendations for the above proposed model are made by evaluating each of the models.

4.1 Evaluation of the Approaches

Step 1: Comparison of the Approaches

The approaches proposed above are compared base on the following criteria:

Criteria Approach Used by Alternative Approach Alternative Approach

Company (Five Stage 1 (Model of 1 (Fiedler Model)
Model) Organizational
Justice)
Ease of This involves This would be easy This would be
Implementation moderate difficulty in for the firm to difficult to implement
implementation as implement as firm as changing the
 company has needs to depict leadership style is a
proposed this change fairness to each of its difficult task.
in 2015 and progress employees along with
has been attained too focusing on
much extent. Thus, customers.
the implementation of
this model will not be
very difficult for the
firm.
Implementation Cost Implementation cost Implementation cost Implementation cost
will be moderate will be moderate to will be high as
high as company changing leadership
needs to improve its style will require
pay system, rating certain training and
system and etc. that learning.
will involve certain
cost
Competency Amazon can easily The company is one The implementation
(Skills, incorporate this model of the largest of this model will be
Knowledge and as it has competency employers, hence it difficult as company
Ability) in managing people has skills to manage lacks skill to modify
and employees workforce and its leadership style.
therefore it can be Jeff Bezos has
said that company autocratic leadership
possesses enough style over the years
skills and capabilities and hence he lacks
to implement this skills needed for
model. transformational
leader that needs to be
learned.
Time Can be implemented This will take 1 or This might take 1.5-2
 in one year. less than 1 year for years to implement.
implementation

Step 2: Evaluation
Evaluation is made using the rating scale of 1-5, where 1 indicates very poor performance, 2
indicates poor, 3 is used for representing neural performance, 4 indicates good performance and
5 is used for very good performance.

Criteria Approach Used by Alternative Approach Alternative Approach

Company 1 1
Ease of 3 4 1
Implementation
Implementation Cost 4 3 1
Competency 5 4 1
(Skills,
Knowledge and
Ability)
Time 4 3 1

4.2 Implementation Plan for the Best Approach

Based on the above analysis, it can be said that the approach adopted by the firm is appropriate
to overcome the OB issue that firm is facing. Another most suitable approach is implementation
of model of organizational justice as it is moderately difficult for firm, requires minimum cost
and firm has enough skills to implement this. Though modifying leadership style is also in the
best interest of firm but it requires sufficient cost and skills that firm is lacking.

Gantt chart
To impose the model of organizational justice, following Gantt chart is proposed indicating the
key activities that firm needs to perform, accountability of people and how the progress will be
checked and the proposed timeline for each activity.

Activities Accountability Progress Tracking Timeline

Identify the unfair Manager of each Progress will be 2 months
areas department tracked against the
standards
Propose suggestions Managers Measure the 3 months
for improvement performance with
industry peers
Implement justice and CEO Track performance by 5 months
fairness comparing it with past
performance
Assess the outcomes Managers of each Assess the 3 months
team/departments performance and
satisfaction level of
employees
References
Amazon (2022) Employee Engagement. [Online] Available from <
https://sustainability.aboutamazon.com/people/employees/engagement>

Ayman, R., Chemers, M. and Fiedler, F. (1995) The contingency model of leadership
effectiveness: Its levels of analysis, The Leadership Quarterly, 6(2), Pages 147-167.

Becker’s Hospitality Review (2015) 9 key issues with Amazon's corporate culture. [Online]
Available from < https://www.beckershospitalreview.com/hospital-management-
administration/9-key-issues-with-amazon-s-corporate-culture.html>

Charles, A. (2019) The ‘five stages’ in coping with dying and bereavement: strengths,
weaknesses and some alternatives, Mortality, 24(4), 405-417.

Chukwusa, J. (2019) Autocratic Leadership Style: Obstacle to Success in Academic Libraries,

Library Philosophy and Practice.

Cropanzano, R. and Molina, A. (2015). Organizational Justice, 2 nd edition, International

Encyclopedia of the Social & Behavioral Sciences.

Gabčanová, I. (2011) The Employees – The Most Important Asset In The Organizations, Human
Resources Management & Ergonomics, 5(1).

Heinitz, K., Lorenz, T., Schulze, D. and Schorlemmer, J. (2018) Positive organizational
behavior: Longitudinal effects on subjective well-being, PLoS ONE. 13(6).

ICMR (2021) Amazon's Workplace Culture. [Online] Available from <

https://www.icmrindia.org/casestudies/catalogue/Human%20Resource%20and%20Organization
%20Behavior/Amazon%E2%80%99s%20Workplace%20Culture-Excerpts.htm#CUSTOMER-
CENTRIC%20APPROACH>

Ivy Panda (2021) 5 Key Issues with Amazon Company’s Corporate Culture Term Paper.
[Online] Available from < https://ivypanda.com/essays/5-key-issues-with-amazon-companys-
corporate-culture/>
Khan, H., Rehmat, M., Butt, T.H. (2020) Impact of transformational leadership on work
performance, burnout and social loafing: a mediation model. Futur Bus J. 6(40).

Kobiruzzaman, M. M. (2021) Tuckman Theory Of Communication, Advantages, And

Disadvantages. [Online] Available from < https://newsmoor.com/tuckmans-model-five-stages-
of-group-and-team-development-theory/>

Kuhn, K. (2007) An Overview and Discussion of Fred E. Fiedler's Contingency Model of

Leadership Effectiveness, Librarian Publications, 13.

Lai, F., Tang, H., Lu, S., Lee, Y., Lin, C. (2020) Transformational Leadership and Job
Performance: The Mediating Role of Work Engagement. SAGE Open.

Last, S. (2021) Five Models for Understanding Team Dynamics. [Online] Available from <
https://pressbooks.bccampus.ca/technicalwriting/chapter/understandingteamdynamics/>

Leadershiahoy (2021) Fiedler’s Contingency Model of Leadership – What is it? Pros/Cons?

Examples? [Online] Available from < https://www.leadershipahoy.com/fiedlers-contingency-
model-of-leadership-what-is-it-pros-cons-examples/>

Reuters (2022) Amazon.com Inc. [Online] Available from <

https://www.reuters.com/companies/AMZN.O>

Robbins, S. and Judge, T. (2013) Organizational Behavior, 15th edition, Pearson.

Sheeraz, M., Ungku, A., Ishaq, I., Muhammad, S. and Khalil, N. (2021) The Research on
Organizational Justice in Scopus Indexed Journals: A Bibliometric Analysis of Seven Decades,
Frontiers in Psychology, 12.

Solanki, K. (2019) To what extent does Amazon.com, Inc success be

accredited to its organizational culture and ND Jeff Bezos's
leadership style?, Archives of Business Research, 7(11).

Wasserman, T. (2021) Amazon’s biggest, hardest-to-solve ESG issue may be its own workers,
CNBC. [Online] Available from < https://www.cnbc.com/2021/08/29/amazons-biggest-hardest-
to-solve-esg-issue-may-be-its-own-workers.html>
Woldearegay, A. and Feng, G. (2021) Predictive model of organizational justice, job satisfaction,
and commitment: The context of the state media sector in the Ethiopian federation, Cogent
Social Sciences, 7(1).