Amazon.

Inc
Human Resource Management Analysis

Submitted By: Falaq (1911155)

5/27/2022
Submitted to: Sir Afzal Khan
Shaheed Zulfiqar Ali Bhutto Institute of Science & Technology (SZABIST)
Hyderabad Campus
Introduction:

A mazon.com, Inc. provides online retail shopping services. It provides

services to four primary customer sets: consumers, sellers, enterprises, and
content creators. The company also provides other marketing and
promotional services, such as online advertising and co-branded credit card
agreements. It serves consumers through its retail websites with a focus on
selection, price, and convenience. It designs its websites to enable its products to
be sold by the company and by third parties across dozens of product categories. It
also manufactures and sells the Kindle e-reader and strives to offer customers the
lowest prices possible through low everyday product pricing and free shipping
offers, including through membership in Amazon Prime.

The company offers programs that enable sellers to sell their products on its
websites and their own branded websites, earning fixed fees, revenue share fees or
per-unit activity fees from these transactions. It also serves developers and
enterprises of all sizes through Amazon Web Services, which provides access to
technology infrastructure that enables virtually any type of business. The company
operates in two principal segments: North America and International. The North
America segment consists of retail sales of consumer products and subscriptions

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through North America-focused websites such as www.amazon.com and
www.amazon.ca. The International segment consists of retail sales of consumer
products and subscriptions through internationally-focused locations. This segment
includes export sales from these internationally based locations, including export
sales from these sites to customers in the U.S. and Canada. The company was
founded by Jeffrey P. Bezos in July 1994 and is headquartered in Seattle, WA.

Company Profile:
Amazon.com, Inc. has a industry profile linked with internet retail having sector of
retail trade. It is a multinational technology company which is engaging in online
retail shopping services. The business segments of amazon includes: Amazon Web
Services (AWS), International segment, North America Segment. The North
American segment is more concerned about the sales of consumer products by
internationally focused websites specifically the ones focused on North America.
International segment is comprised of sales which are global and not specific to a
country or region and it gets the track through internationally focused websites.
The AWS segment includes the sales mainly of storage, database, and the services
offered by AWS for the ones who are at startup stage. Amazon has a market
capitalization of $1.2T and a total of 1.6M employees in 2021. It is more customers
centered rather than competitor centric company

Country U.S
Headquarter Seattle
Industry Internet Services and Retailing
CEO Andrew R. Jassy
Website www.amazon.com
Company type Public

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Ticker AMZN
Revenues ($) $469,822
Profits ($M) $33,364
Market Value ($M) $1,658,807.3
Employees 1,608,000

Mission Statement:
Amazon’s corporate mission is “to be Earth’s most customer-centric company.”

The mission statement is delivering a point that Amazon is promising services that
are related to e-commerce to cater the needs of target customers regarding the retail
platform online. The main focus of their mission is on the customers which infer
certain variables that a customer expects from an online service business integrated
with latest technology. There are certain prominent factors which are highly
associated with this mission statement and that includes: lowest price, goods and
services selection, e-commerce convenience, industry leader globally.
Recommendation:

Components of Mission covered by Amazon

1. Product: economies of scale

2. Philosophy/self-concept: Selection (Grading)

3. Technology: Technically Equipped

4. Market: Global

5. Employee: Missing

6. Concern for growth: Missing

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The perfect mission statement is one which covers all the components of a mission
statement, Amazon however covers all the aspects except the two i.e. concern for
growth and concern for employees so to cover that a recommended mission
statement is as follow

To continually raise the bar of customer experience by motivating employees,

using advance technology & operations that help them to purchase anything of
choice with a view to expand more in future

Vision Statement:

Amazon’s corporate vision is “to become Earth’s most customer centric company ;
to build a place where people can come to find and discover anything they might
want to buy online

Recommendations: Its vision is lacking a few ideal characteristics it is basically

focusing more on one side i.e. customers it lacks the detailing of long term road
map and strategic targets with the perspective of customers, industry, product
offerings and the category of market in which it operates. It must relate its
marketing mix which includes its global presence its products i.e. e-commerce
service, cloud computing to make it possible for amazon to become world’s best
employer. However it can add more details regarding amazon’s long term goals to
make its vision more relevant to its stakeholders. These additions will particularly
make its vision more strong and unambiguous in terms of long term planning.

Recommended vision statement: To become Earth’s best employer by integrating

highly advanced technology with a view to provide everything a customer
demands.

Recruitment:
Recruitment is basically attracting potential candidates it is creating a pool of
potential candidates. Amazon strives to bring in the diverse talent, innovators and
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change makers who are highly adaptive to changes in dynamics and technology
specifically. They are aiming to develop future generation of talent. They are more
concerned about holistic strategies that are well supported by K-12, Higher
education and underrepresented students.

Sources of Recruitment
To hunt for the best talents be it for technical or non-technical roles, amazon
partners with institutions and organizations that has their reach to underrepresented
communities.

1. Recruiting from diverse colleges and universities which includes HBCUs,

HSIs, women’s colleges and tribal colleges
2. Job postings at their websites
3. LinkedIn posting
4. Newspapers
5. Television advertisement
6. Mailboxes
7. Employee Referrals
8. Employment Agencies
9. Career Day

They mostly go for Employee referrals when they go for internal hiring if the
one that refer and it his referral gets hired that employee will be getting a $1000
of bonus.
Factors Affecting Recruitment:

1. Labor Markets: the tight labor markets of US is highly impacting the way
amazon hires as it is an hiring giant and yearly hires 160,000+ employees so
in these conditions they have developed a new approach of recruitment
namely Family Flex which have brought about the parents specifically
mothers who actually left their jobs in the pandemic situation by offering
them flexible schedules of working so that they can balance their personal as
well as wok life, on the other side it enabled them to avail and manage last

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 minute appointments with doctors for their kids. Though this program they
aimed to keep the women working under the pandemic situations as well
2. Government policies: some recent government policies have aided in the
growth of Amazon as they gave a $1.2M stimulus package. The government
policies were very strict in the Pandemic situation which resulted in shutting
down of all retail outlets but amazon continues to operate due to its global e-
commerce presence and this increased their demands so they needed to hire
more candidates.
3. Technological advancements: In the recent times of technological
advancements Amazon is the one who is integrating different technologies
in its recruiting mechanism, they are under process of formulating a software
for which they have employed 1000 technology workers that software will
assist Human resource department, they have already developed portals
where 100% online hiring takes place where applicants apply through
entirely find and apply online. Other than that they are using AI which can
screen the resumes and look for relevant keywords other than that they are
also using ATS (applicant Tracking Software).
4. Size of organization: the bigger the size of the organization implies that firm
is going on expanding and for that the amazon is hiring the personals who
are more adaptive to changes and the ones who can better handle the
diversified operations.
5. Product related policy: recently Amazon has introduced a one day shipping
policy that resulted in them hiring more candidates for shipping, pick and
pack services

Amazon Hiring process:

Step 1: The Resume Screening
This is the first step when they get the resumes they go for screening. Before any
human recruiter screens them an AI will go through the resumes and search for
keywords that a particular position is requiring. No one knows what those words
are but there are some kinds of clues already given in the amazon’s leadership

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principals. Then a human recruiter will look for requisite skills and education and
experience to make sure that the particular candidate is eligible and fit to work.
Step 2: The Screening call
After passing through r5esume screening the candidate will receive a call from HR
recruiter who will assess the communication skills, motivation, personality and
work attitude. Why are you interested to work at Amazon?

 How do you imagine a typical day in this job?

 Tell me something about yourself.
 What motivates you in work?
 Which Amazon leadership principle resonates the most with you, and why?
 What do you like the most about Amazon? What do you not like?

Step 3: The amazon online assessment:

These are done for both technical and non-technical positions after the screening
call step. They are used mainly for internships that are offered to new graduates.
They are highly related to those job roles they are being hiring for. An example of
it: the software engineers or maintenance technician specialist go for coding test.
Other types of test include personality test which is also known as amazon work
style assessment and aptitude test.

Types of assessment test:

 Numerical reasoning test checks a candidates’ ability to analyze the graphics
and statistics i.e. table and charts.
 Verbal reasoning test checks the ability to listen and understand the
instructions provided
 Logical reasoning test
 Amazon work style assessment: they check candidates work preferences,
work ethics and work values that will they be able to fit in the work culture
of amazon or not.
 Amazon assessment center go for group exercise which checks a candidates’
team working skills written tests checks how well they write and their

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 grammar as well, for role-play they check how a person behave in real work
situations

Examples of role-dependent online assessments are:

Amazon Maintenance Technician Test: The toughest part of the Amazon Maintenance

Technician’s hiring process.

Amazon Area Manager Assessment (Manager in Operations): The first screening step
that any Area Manager and Operations manager candidates must pass.

Amazon Financial Analyst Excel Test: Advanced Excel assessment and case study
preparation for financial analysts.

Amazon Assessment Test for Warehouse: A behavioral and personality assessment that
is a crucial part of the Amazon warehouse & fulfillment assessments.

Amazon SDE Online Assessments: A set of assessments given to candidates applying

for Software Development Engineer positions.

Amazon MBA Online Assessment: The initial online assessment that any Amazon
MBA candidate has to pass.

Amazon Solutions Architect Assessment: The online assessment given to Solutions

Architect and Cloud Support candidates. 

Step 4: The video Interviews:

After phone screenings they go for video screenings in that many behavioral
questions will be asked with a blend of more in-depth questions. For technical
roles there will be coding assessment, algorithm, and data structure questions and
for non- technical roles there will be more case based and strategy question as per
the role or job for example for product manager they will be asked should amazon
start to target e-commerce stores? Or does pricing strategy of amazon prime is too
high? Express your thoughts.

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Step 5: Writing tests:
Before going to experience on-site interviews the candidates are to be passing
written test. It is an integral part of the assessment as amazon gives priority to the
written communication an example of which is they don’t prepare power point
presentation for any new idea or meeting rather they prepare a Performa which is
to be read in front of the members attending the meeting, so written test is must
when candidate go through hiring process. In this they require candidate to choose
among two options write an essay that should not be more than 4 pages and then
submit it via email.
Step 6: loop ‘on-site’ interviews:
The on-site interviews of amazon are termed as Loop interviews, in this the
candidate will spend a whole day at amazon offices, and there they will be
interviewed 6-7 times. The type of interview will be one-on-one whose duration
will last for 60 minutes. The people whole will be responsible are colleagues, the
recruiting manager, and a senior executive.

Bar-Raisers are interviewers that are more concerned about the applicant’s overall
quality to be an employee of amazon and not with the work related specification of
job. Bar-raisers are seniors with 3+ years of experience they are specifically trained
for hiring and their work is to raise the hiring bar. They will out more emphasis on
amazon’s leadership principals.

The bar raiser will pay special attention to the following:

 What questions is the candidate asking?

 Do they see the bigger picture of their role or the product they’ll be working
on?
 Do they care about how their role impacts the company?
 Do they show empathy for other user?
Step 7: Hiring committee review:
This the final stage where a candidate has gone through all the stages and now all
of the interviewers (hiring committee) will be convening in one room to decide
take opinions on whether to select the candidate or not it is also known as hiring
meeting. Together they will decide the level of candidate based on which the salary

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will be dictated. The HR will inquire about the current salary and also about the
expected salary based on which they will finalize and send a written offer letter to
the candidate the results will be announced one week after the last interview. After
offer letter the recruiter will explain the necessary details as of the work location,
salary and hours of working. If candidate is to negotiate then necessary
adjustments are to be made by compensation officer or committee.

Interviewing at Amazon:
Amazon has a policy that they interview the ones who are meeting their
requirements to be hired. So if anyone has been called for interview there are more
chances that he will be selected. They conduct interview specifically to check the
cultural relativeness of the applicant with the company.

The interviews begin with several 1 or 2 phone call interview or maybe video call
or email from one of the recruiter belonging to HRD. Here they are required to talk
about their background and why should they hire you and how you are a good fit
for the Amazon-retail giant. Then the first interview will be scheduled which will
take place via Internet.

Here some senior level executives along with hiring manager who is in charge of
the hiring will ask some questions like behavioral questions like: tell us about
yourself? why you chose amazon? Tell me about the time when you developed a
product in anytime in your life? Tell me about a time when you have failed?

Sample Interview Process

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Background Checking – Reference checking: this includes criminal
convictions which includes misdemeanors and felonies for over past 7 years. This
reference checking procedure takes place after in-person interview to check that
whether the candidate is trustworthy or not. For higher ranks they often undergo
more than two reference checks and for more senior positions they undergo strict
reference checks

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They might go in person or call their previous bosses to let them know about their
former employee or they talk to at least one colleague, for managerial positions
they often demand one of the former direct report.

They go for drug tests where they will be taking swabs and checking if they do any
types of drugs or not.

If anyone fails to pass the reference check they report them to FRCA guidelines.

Performance Management & Appraisals:

Amazon uses six sigma style processes which is aiming to offer their customer
with best experience at the best possible prices. The amazon more preferably uses
data driven approach along with clear metrics aiming to measure employee and
customer behavior. As one of the finance manager said that data is clearer and aid
in sound decision making.

The Amazon has a PeformYard which describes that every performance

management system must have a reason for existing. The performance
management system at amazon is clear i.e. it demands the best. The building
blocks for performance management are its 12 leadership principals. Above all
they focus on a person’s ability to own their ideas and objectively defend them and
test them

Annual feedback – stack ranking:

Amazon uses stack ranking also known as rank and yank as their performance
appraisal tool in which the employees are ranked against the other employee on
annual basis i.e. once in a year. In this every single aspect of employee’s
performance is ranked from the very earlier stage of his job also the employees are
treated as data subjects and by the end the employees who are kept are the ones
whose metrics are add up.

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Anytime feedback tool:
The amazon uses annual reviews but side by side they also use continuous
feedback mechanism. This is a kind of company’s internal mechanism where peers
can provide feedback anonymously they can either praise other or put forward a
critique they have right to keep their identity a secret r reveal it.

The one who do not stack up in rank yank approach are offered a 3 moth long
performance improvement plan to help employee know about their deficiencies
and get them back on their tract by significantly improving them

The feedback system at amazon are highly pushing the employee to their limits to
be innovative in one way or another which is described by some Amazonians as
“an intricate machine propelling them to achieve Mr. Bezos’ ever-expanding
ambitions."

Amazon quantify each aspect of its business and so does their performance
management system, they undertake monthly, weekly and yearly business reviews
where every employee is held accountable for their metrics

Organizational level reviews-annual:

Every year amazon undertakes organizational level reviews which aims to present
top and bottom level employee in front of board of managers this is named as
“Purposeful Darwinism” the managers are to come up with the proofs of the unfair
acquisitions against their employees.

Compensation:
The compensation at amazon includes:

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Pay:
Amazon’s minimum wage begins at $15 an hour for all full-time, part-time,
temporary (including those hired by agencies), and seasonal employees across the
U.S.

Benefits:
1. Medical, prescription drug, dental, and vision coverage
2. 401(k) savings plan with 50% company match
3. Paid time-off and holiday overtime pay
4. Resources for overall well-being
5. Discounts on Amazon purchases

Health:
1. A health saving account
2. Dental and vision plans
3. Flexible Spending Account for health and dependent care.

Mental health:
1. The physical and mental well-being of our associates is Amazon’s top
priority.
2. Comprehensive medical care starting on day one so employees have access
to the care when they need it most
3. 24-hours-per-day free and confidential counseling services
4. Various leave and medical accommodation options covering both mental
and physical health concerns.

Medical Advice line:

1. Amazon associates have 24/7 access to free consultations with a nurse, or for
a small fee.
2. a doctor who can help with diagnosis, recommend treatment and prescribe
short-term prescriptions for less than the cost of an urgent care or emergency
room visit.

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Financial security
1. Amazon offers a 401(k) plan with 50% company match. This plan allows
employees to save money for retirement,
2. Amazon also has a stock purchase plan that allows employees to buy
Amazon stock at a discounted price

Parental leaves: 20 week of paid leaves to the female who are birthing mothers
and a 6 week leave to the ones who adopts.

Ramp back program offers 8 weeks of flexible work schedules and partial work
hours by the time they readjust to regularity of the work.

Additional benefits:
1. Free employee assistance program, which provides confidential 24/7
support, resources, and referrals for every aspect of work and personal life
2. Online resources for parents whose children struggle with developmental
disabilities, as well as help finding child and elder care referrals and
assistance
3. Financial counseling, estate planning, and other services in the event of a
life-threatening illness or death
4. Adoption assistance for qualified domestic and international adoption
expenses including attorney fees, court costs, and travel
5. Company-paid basic life and accidental death and dismemberment
insurance, with the option to enroll in additional coverage for dependents
6. Company-paid short-term and long-term disability

Unionization:
Amazon is not a big supporter of unions as according to them they are providing
enough benefits and they compensating enough and they have direct feedback and
open hand policy to approach any of the higher level positions. They said its
useless to have unions associated with them when they can internally fulfill and

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listens to their workers but recently the working conditions in fulfillment centers
were worse and one of their former employee who amazon fired a year ago has
filed an election campaign against how many amazon workers wants to be
associated with unions and most of them has agreed to associate them with union,
this made them develop labor union in the April of this year.

Separation:
Amazon policy is very strict and rigorous and everyone is required to abide by
their policy and if one fails to follow will result in them being terminated. Amazon
follows a point system to write-up the employees and if one gets 6 or more will get
terminated. However there is not any immediate termination, amazon offers them
pivot courses which is a kind of 2 months training i.e. probation period in which
employee is made to learn work ethics. The other option is to terminate and the one
who gets fired is offered a severance pay of $5000 and if that agrees to avail and
accept it then they are no more eligible to reapply in Amazon.

Other than that amazon has a very sharp procedure of notification so if anyone
violates the policies or drop the threshold of selling they will receive a notification
on their account an green tick means there is no notification but a yellow
exclamation marks represent a new notification hence a new warning.

If anyone misses the targets they will be written up and anyone who got write-ups
6 times a year they lead to termination.

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