Human Resource Management

Chapter 1 – Introduction to HRM

Case Study Analysis – Amazon as an
Employer
www.pib
m.in

1
 Case History
• Company Name: Amazon

• Sector: E – Commerce

• Country: USA

• Product and Services: Electronics, Fashion, Home Decors, Furniture's and etc…

• Organizational Structure: Functional Organization Structure

• Strength: Work Environment – 50,000 Employees

• Number of Participants: 3 People

• Article
• Jeff Bezos
• Employees

• Problem Statement:
 Case Hot Points

• Unconventional Office Culture

• Physical Stress @ Amazon Workplace
• Long Working Hours
• Employee Work Overtime
• Mental Stress – Work Harder and Faster until they quit, collapse and terminated
• High in Employee Turnover
• Talented Employee Attraction and Retention
• Top Management – Leadership Skill
• Employee Perks and Benefits
• Employee Aggressive Behaviour
• Workaholic
 HR Functions Practices

Talent Acquisition Process Work life Balance

Amazon
Amazon was rigorous
is using in recruitment
Bell-Curve Method
Gender Inequality
process – Women
for evaluating their employees
ScreeningChild Rearing
process will be done by
Performance Management Company – level review will be done
star in
once performer of the company
a year – managers discuss
System Bosstheir
Criticism – Women Employees
subordinates ranking
Part-time Interviewers are used for
Working Hours – process
recruitment 80 hours in a
Employee Criticism through
Week
Feedback for under performer
Working Contract has been signed
between Work
new Pressure
joiners – 1 year and
Leadership Style Negative comments
relocation expenses with in 2 years
Replacement – Old to New
Amazon was rigorous in recruitment Amazon is using Bell-Curve Method
process for evaluating their employees

Screening process will be done by Company – level review will be done

star performer of the company once in a year – managers discuss
their subordinates ranking
Part-time Interviewers are used for
recruitment process Work life Balance Employee Criticism through
Feedback for under performer
Working Contract has been signed Gender
between new joiners – 1 year and Inequality – Women Negative comments
relocation expenses with in 2 years
Child Rearing

Boss Criticism – Women Employees

Working Hours – 80 hours in a

Week

Work Pressure

Replacement – Old to New

 Problem Statements & Solutions

Problem Statement

Would Amazon demanding corporate culture

Performance Management System Process
continue to lead to innovation?

Leadership Skill Gender Inequality

Employee Perks and Benefits

Work Life Balance

Employee Work Hours Work Pressure Employee Aggressive Behavior

Talent Acquisition Process Employee Criticism

 Solution

:- HIGH STANDARDS AND EXPECTATION

SETTING STANDARDS AND EXPECTATION FOR EXCELLENT PERFORMANCES.COMMUNICATON OF THE
STANDARDS,GOALS,OBEJECTIVE,AND RESULTING EXPECTATION IS THE KEY TO SUCCESS IN EACH OF THESE
AREAS.
:-GENDER EQUALITY
THE CONCEPTION OF HINDERING CARRIERS IF A RAISING A CHILD OR NOT TO HAVE BACKBONE ARE SOME
CRITICISM THE COMPANY FACES .THE FEMALE EMPLOYEES SHOULD GET A BETTER PLATFORM TO GROW WITH
EQUAL OPPOURTUNITY IN THE ORGANIZATION.
:-HEALTHY COMPETITION AMONG CO-WORKERS
AMAZON’S CULTURE IS TRANSPARENCY ABOUT WHO IS HIGH ACHIEVER AND WHO IS NOT.THERE SHOULD BE A
POSITIVE CULTURE FACILITATING ON SOCIAL INTERACTION,TEAM CORDINATION AND COMMUNICATION WHICH
WOULD LEAD TO BETTER RESULTS.
:-SENSITIVE MANAGEMENT
EMPLOYEES WHO ENDURED GREAT PERSONAL HARDSHIP INCLUDING CANCER,PUSHED OUT WITHOUT
SUFFICIENT TIME TO RECOVER AND PERFORM AT THEIR HIGHEST ABILITY.THEY SHOULD RATHER ENCOURAGE
EMPOLYEES TO MAKE EARN MORE PERKS AND BENEFITS.
:-FAVORING HARMONY OVER CRITICISM
“WE ALWAYS WANT TO ARRIVE AT THE RIGHT ANSWER”
:- BENEFITS
AMAZON REQUIRES NEW WORKERS TO REPAY PART OF THEIR SIGNING BONUS IF THEY QUIT BEFORE A YEAR’S
TIME,AND A PORTION OF THEIR RELOCATION FEES IF THEY LEAVE WITHIN TWO YEARS,ACCORDING TO THE
REPORT.RATHER THAN THIS THERE SHOULD BE WORKPLACE FLEXIBILITY,HEALTH CARE ,PERFORMANCE
BONUS FOR THE BETTERMENT OF EMPLOYEES .
:- COMPLAINT BOX
THERE SHOULD BE A SYSTEM OF COMPLAINT BOX FOR THOSE EMPLOYEES TO MAKE SURE ABOUT THE
COMPLAINT REACH TO HR DEPARTMENT AND STRICT ACTION CAN BE TAKEN AGAINST THEM .
 Case Learning Outcomes

IF SOMEONE WOULD HEAR AMAZON AND THINK WOW A BIG COMPANY WANTS ME.THEY
COULD STILL OFFER A STRONG EMPLOYEE VALUE PROPOSITION BECAUSE OF ALL THE
ACCOMPLISHMENTS IT ALREADY HAS.WORKING FOR AMAZON WOULD BE BIG FOR A KID WHO
JUST GOT OUT OF COLLEGE.ALTHOUGH IT WOULD STILL HAVE THESE PERKS IF THEY DON’T
CHANGE THEIR CULTURE THEN THE TURNOVER RATE WOULD STILL BE THE
SAME.MILLENNIALS CARE ABOUT RECOGNITION AND BEING APPRECIATED AND IF AMAZON
CANNOT PROVIDE THAT THEN MANY WILL QUIT.
ALTHOUGH THEY DID NOT HAVE ANY FEMALES IN TOP LEADERSHIP TEAMS MAKES IT SEEMS
LIKE SEXISM IS A THING IN THE WORKPLACE STILL.THIS WOULD BE A PROBLEM FOR THE
COMPANY.ALSO 80 HOUR WORK WEEKS ARE EXTREME AND WOULD PUSH EMPLOYEES
AWAY.KEEPING EMPLOYEES ON THE EDGE DID NOT ALWAYS RESULT IN INNOVATION.IT LED TO
MORE PEOPLE QUITING BECAUSE OF THE PRESSURE OF THE COMPETITION OF THE OTHER
EMPOLYEES AND NOT ENOUGH TIME WITH THEIR FAMILIES.
“Be the change you want to see in the world”

- Mahatma Gandhi