HRM Issues in Amazon
The company Amazon has been expanding its business from the last of the nineteenth century in the both ways horizontally and vertically in the whole world. The company is also identified as one of the most problem facing companies among the recent global scenario. The problems which have been identified are related to the internal structure of the company. Unreasonably high standards and expectation, over forthright leadership, breeding unhealthy competition among the co- workers, in sensitive management, favoring criticism over harmony, lack of benefits, disregarding employees' need for work-life balance, lack of praise and finally unfairly ranking system for the employees are the major problem of the company. The main human resource problem of the company amazon is their employee retention strategy and the over timing policy for the employees. The human resource which the company it using a vast number of people because of the global market of the company.
Introduction to HRM
HRM or Human Resource Management primarily designed by the HR department in order to maximize the employee outcomes. It also focuses on the policies existing in the system. The HRM function concentrates on the organizational activities to achieve corporate aims like recruiting and hiring employees. Employee orientation and training are also included in the HRM(Rosin, 2017). HRM also contributes to the leadership strategy of recruiting efficient employees who can perform high quality work and provide satisfying customer service.
Any organization’s competitive advantages depend highly on the HRM because the4 recruitment of right people at the right time depends on the HR management. HRM assures the supply of qualified labor when necessary(Rosin, 2017). It also ensures if any organization is properly staffed or not. Effective HRM fortifies a proper recruitment and selection process that is necessary for the future success of the organization. By implementing effective pay systems the management can influence employee focus and effort in achieving organizational goals. Human resource management also looks after the training process of the employees so that they are properly skilled to support the organization(Rosin, 2017).
Human resource planning of Amazon
Human resource planning of Amazon includes the Employee-Retention strategies of the organization. The employee retention policy differs in different industries. Amazon’s “ only the strongest survive” employee retention policy is both appreciated and criticized worldwide. In a poster of Amazon the organization has shown a child as a low-retention employer. According to some respondents different HRM strategies are to be found depending on the nature of the business. Few commentators have also suggested that the strategy of higher employee turnover can prove to be appropriate for companies like Amazon(hbswk.hbs.edu, 2017). As amazon is one of the companies where the loyalty of the customers is associated with the products and its prices and less towards its employees, this strategy seems to be work successfully for the organization.
Gearing a retention is usual phenomenon for companies like amazon. While considering turnover it is important to focus on the people who are leaving the company. Most of the employees who are well paid and expert in cloud computing often leave because of poor treatment.
According to ITG amazon’s business model is highly dependent on the scale, efficiency and automation(Rosin, 2017). The HR or recruitment strategy needs to be revised in such a manner so that it attracts and retain the employees which will help in the acceleration of the business. Proper use of recruitment policies can also improve the performance and competitive advantage factors. According to Gopal Parmeswar the retention policy needs to be governed by the employee role of the organization. The two track policy has been successfully strategized for this company.
Although experts have commented that low-retention policies can play an important role in HR strategies, some have expressed their negative views on this policy (hbswk.hbs.edu, 2017). According to some this policy highlights the negative side4 of capitalism and this move is against democratic recruitment policies. The New york Times report on Amazon’s personnel strategies generated severe debate among the experts. The article itself can be questioned as the article mainly focused on the interviews with the already retented employees or the ones who have already left the organization (hbswk.hbs.edu, 2017). This implicates severe restrictions on the movements of the reporter inside the organization. If the article is considered to be authentic one, the organizational strategy has been portrayed negatively. According to this article the personnel strategy of Amazon is to offer exciting jobs and provides opportunity to earn high compensation but the jobs become too demanding for the employees. Particularly it is difficult for the employees with health problems and family issues (Rosin, 2017).
Contradictorily the low retention HR strategy is regarded as a successful one by the customers. Though high retention strategies seem to be more attractive for the employees, investors and customers, Amazon seems to be believed in the policy of fewer, better trained and better-paid employees to run an organization successfully.
The employee grudge against the organization has led to a lower profit scale of Amazon. According to Eric Morehead employee happiness is more important than customer satisfaction for organizational success. This problem can be resolved with greater transparency in the recruitment system of Amazon (Streitfeld, 2017). According to the former employees of the organization the bosses lack empathy and do not support personal priorities over job priorities.the narratives from the former employees can help understanding the employment relation and the employee relations relevant inside the company. The issues which the employees have identified are
- The company sets unreasonably high standards which seem to be impossible to achieve for the employees(Streitfeld, 2017). The employees feel the pressure of unreachable expectation. Unable to meet such standards they suffer from significant distress.
- The management style of the company has been often criticized to be a dominating one. NYT also reported the authority to be bureaucratic.
- This organization has always been transparent about who is high-achiever and who is not. Employees are expected to work after their working hours and often for a long period of time. According to the mentioned report the employees are encouraged to negate the ideas of the co workers openly which lead to a unhealthy workplace atmosphere(hbswk.hbs.edu, 2017). Many employees have told NYT that Anytime Facebook Feedback tool is often used for scheming. In several cases the anonymous criticism is often copied directly in the performance reviews of the employees.
- Insensitive management is another factor identified by the former employees of the organization.the employees commented that they are often judged or pushed out in spite of personal crises(hbswk.hbs.edu, 2017). Though an Amazon spokesman defended by stating that they would take swift action to correct the charges that have been brought against them regarding employee dissatisfaction.
- This organization favors criticism over harmony which further complicates the employee relationship. One of the distinctive management belief of this organization is that harmony in workplace is overvalued rather than the organization needs to prompt the competitive spirit among the employees(Rosin, 2017).
- Unlike other companies Amazon does not provide any special benefit to the employees of the organization. They do not cater to the basic needs of the employees and obsessed in meeting the customer demands.
- Lack of praise and unfair systems of ranking are other issues that the employees have pointed out(Rosin, 2017). This organization holds Annual Organization Level Reviews and the managers discuss and decide the ranking of the employees in the presence higher level managers. They often fire valuable talents just to meet a standardized quota.
Managing diversity and work-life balance
The human resource of the company is the main base of the company. For managing the diversity and the work life balance of the employee's, few human resource theories are helpful which can be used by the authorities of the Amazon company. For developing and improving the quality of the human resources and the recent problems which this company is facing related to this topic motivational theory is the best one. As it is already known that the company is a large one and also widespread. For this reason the people who are working in this company is also diverse in nature and for managing this diversity the company needs to apply the theory of motivation. By which the employees have been motivated through different teamwork exercise,monthly awarding system etc. work life balancing is sometimes get so much difficult for people (Armstrong & Taylor,2014). The extra workload which have been introduced by the organization is become hard on the employees. So the company also have to think behave of the employee and motive them to gather interest in their job. They also have to explain the importance of the employee to them for creating faith for the company. The situation in which people are to their work and the organization and are motivated to achieve high levels of performance.the company also have to introduce goal achieving targets for the employees. The organizational behavior theory is also have a deep impact in managing the diversity and the work life balance of the human resource.
The company also have to keep in mind that the human resource they have, is the main capital of the company. They have to focus in this factors and also have to change the strategies of the company. Managing the diversity and work life balance is also concern of the employees(Chelladurai & Kerwin, 2017). The company also have to understand that the diversity within the employees of the company is not a distraction for the company. It is the biggest advantage which this company is generally facing right now. They can collect different kind of new idea’s from this diverse human resource and analyse them and finally use them as new strategic plan (Brewster, Houldsworth, Sparrow & Vernon, 2016).
Ethical and legal contexts of HRM
The ethical and the legal context of the company is the main factors of a company which is totally related to the human resource of the company. The ethics of the company is the base of the company. Every company has their own ethical policies who have been maintained by the whole company. The different company also have some ethical context which is same in nature(Budhwar & Debrah,2013). These ethical contexts give the employees the opportunity to be considered as same with every other individual. According to the new york times article, the ethical and the legal contexts give the employees the power to understand their ethical and legal powers of the employees. The short terms goals of the company may be achieved through the free market principle. The company also have to maintain the quality of human resource requirement. The motivational theory also can be included in this ethical and legal contexts of the human resource management.the legal regulation which have been identified by the government is being implemented by the Amazon company. They take these issues, legal and ethical issues very seriously and also work on them in the annual basis(Shafritz, Ott & Jang, 2015).
According to the new york times, the workers are encouraged to tear apart one another's ideas in meetings and other activities.the company also has to focus in the flexibility of the employees which is very valuable for the company and employees are very much attracted by this process. In addition, the capability of the employees can be increased by this process. The legal issues of the company also have be viewed by the employees and the company itself. They also have to focus in the communication system of the company which can easily upgrade the ethical and legal contexts of the human resource management(Jones & George, 2015). This company has always targeted an unreasonably high target. They also have to maintain these internal behaviour of the company to manage the human resource of it. When both the company Amazon and its employees understand the overall ethical and legal values of the company it would be easier to resolve the problems of the company(Riley, 2014).
According to the new york times article the employees of the Amazon company is highly dissatisfied with the companies different issues. But the company has identified that the issues which have been identified by the employees do not come under the policies of the company. But according to the experts the issues which have been identified are basically affecting the profit of the company and also decrease the growth of the Amazon company.