This document provides an overview of leadership and management at Amazon. It discusses Amazon's company background and focuses on their leadership and management concepts, styles, and skills. The transformational and transactional leadership styles are evident at Amazon. Quality management is also a core value, with techniques like PDCA cycles and tools like fishbone diagrams used. Change management looks at internal and external factors influencing change. In summary, the document analyzes Amazon's leadership approaches, emphasis on quality standards, and how they manage organizational change.
2. ABSTRACT
This management case report is an analytical summary of leadership and management in
Amazon with a focus on the "HOWS" of operational leadership and management. Looking at
directing employees' behavior from a geocentric perspective. To clear up research objectives, this
report has analyzed the leadership and management concepts at Amazon by viewing how the
business in ran through objectives and also the various approaches to management beginning
from the Situational and contingency approach to the Transformational and transactional
approach with a behavioral analysis of management and leadership.
Furthermore, it justifies the different management, leadership styles, and skills that excellent
managers could portray at their various working points. Quality management happens to be the
core value to all organizations, his report will ascertain this statement by evaluating the
importance of quality standards to Amazon. Finally, we all know that change is inevitable to the
organization and very instrumental in organizational success and development. In this light, this
report will effectively and efficiently evaluate this avowal analyzing the internal and external
factors influencing change and the stakeholders that influence change within a business
organization.
3. CONTENTS
ABSTRACT..................................................................................................................................... 1
INTRODUCTION............................................................................................................................. 3
COMPANY BACKGROUND........................................................................................................... 4
LEADERSHIP AND MANAGEMENT CONCEPTS AT AMAZON ................................................. 4
MANAGEMENT AND LEADERSHIP STYLES AT AMAZON........................................................ 5
Amazon Leadership technique................................................................................................ 7
LEADERSHIP SKILLS.................................................................................................................... 8
QUALITY MANAGEMENT............................................................................................................ 10
QUALITY MANAGEMENT IMPORTANCE.............................................................................. 10
TECHNIQUES AND TOOLS OF QUALITY MANAGEMENT.................................................. 11
Organizational CHANGE MANAGEMENT ................................................................................... 13
CONCLUSION .............................................................................................................................. 16
4. INTRODUCTION
Leadership and management have been one of the staple topics in the life of businesses
nowadays with an early focus on directing resources.All organizations are social systems wherein
behavioral reactions differ varying in personnel. This force alone is pop out of many contemporary
theories on how to be a perfect leader and how to plan, organize, lead, and coordinate
organization activities to the attainment of goals and objectives. Amazon is a perfect example of
a firm management structure and stern leadership (Van Auken, 2002). The mantle of getting
things is driven by specially molded solutions that unite all resources including manpower to have
the perfect results. Amazon has over the years blended to the finest the urge of getting things
done the right way and has focused on leadership and working with not only humans but also
managing what they bring to the drawing table (resources) (Andaleeb, 2001).
5. COMPANY BACKGROUND
With the missionto first make electronic books available worldwide in 1994 to be an e-commerce,
cloud computing, digital streaming, artificial intelligence tech giant, on one hand, Amazon is the
biggest online American multinational technology company and digital retailer of electronics,
software, video games, apparel, furniture, food, toys, and jewelry in the world founded by Jeff
Bezos with its headquarters in Seattle, Washington with over 750000 employees and a 2019
turnover of $280.5 billion (Welch, 2015) with 76 million clients (johnson, 2011).
Amazon.com is backed by a straightforward business style known as is e-commerce facing dual
competition. In the web services sector its competitors are Alibaba Group, Oracle, Microsoft,
International Business Machines Corporation (IBM), and Google. Alibaba, Taobao, Tmall,
Aliexpress, Walmart,otto, JD, Flipkart, eBay, Rakuten, and Newegg worldwide are its competitors
in the retail industry making everyone in one way or the other a competitor to this market giant
and all carve-out niches and focus operations on so as not be extinct from the market forces
(O'Connor, 2017).
LEADERSHIP AND MANAGEMENT CONCEPTS AT AMAZON
Management which happens to be one of the activities carried out every second is a complex but
simple endeavor that drives efficacy to efficiency and effectiveness. Management being that the
social process of planning, organizing, staffing, directing, controlling all organizational resources
effectively and efficiently directed to attain a predetermined goal and objective is one with a lot of
focus on getting work done through people (Meredith, 2010). Furthermore, leadership could be
referred as that influencing process wherein an executive of a structure directs the behavior of
people towards the accomplishment of certain tasks to attain specific goals and objective and
also coherently drive the activities of an organization. That is, leadership is that activity that entails
influencing with zeal and charisma the work behavior of subordinates for them to carry out their
6. engagement activities confidently in line with internal rules and regulations. Leadership is more
of the will power and enthusiastic charisma to give results by bringing people as one amidst their
differences to attain a common goal (Ford, 2017).
The concept of leadership in Amazon is a chainlike process that affects all other operational
instruments. It is guided by the work hard principle spanning from the generation of ideas for new
projects, deciding on the best solution for a customer's problem, and interviewing candidates to
join the workforce. At Amazon, all is a leader in a defined domain. They do not just sit and give
orders but get involved in all the operational processes to raise the standards of performance with
every hire, promotion, and delivery (Aguinis, 2014). Amazon’s drive to perfection is masterminded
by 14 principles of leadership styles which are; Customer Obsession, Ownership. Invent and
Simplify, Are Right, A Lot, Learn, and Be Curious. Hire and Develop the Best. Insist on the Highest
Standards, Think Big, and Bias for Action, Frugality, and Accomplish more with less. Earn Trust,
Dive Deep, Have Backbone; Disagree and Commit, Deliver Results. Transformational and
transactional leadership is evident in Amazon as it is well blended to be coercive to get work done
in extreme cases, regular controls, with a reward and punishment system (Transactional) where
a constraint in resource or time pops out and Transformational style of boosting employees
morale, motivation, and psychological wellbeing for employees to share in the vision and values
of the organization and pictured as an important resource to organizational growth. This system
is used at the topper management while the transactional is made use by the general workflow in
Amazon (O'Connor, 2017).
MANAGEMENT AND LEADERSHIP STYLES AT AMAZON
Leadership is a virtue that is lacked by many managers and a shortage in this virtue makes
management activities a nightmare with constant resistance and underutilized talent values and
resources.There are varying leadership skills which will be discussedin the subsequent phrases.
7. Autocratic leadership is a management drive that is characterized by authoritarian leaders who
capitalized on mono decisions and centralization of power to the top. Autocratic leaders, also
known as authoritarian leaders, generally have all the power, authority, and responsibility in an
organization (Creech, 1994). There is rarely input or decision-making on the part of the team or
group members;instead, team members are tasked with implementing the leader's decisions and
choices. With a very rigid form of administration, although the team can be demoralized with a
single opinion, there is a faster channel in decision making. For example, Adolf Hitler was an
autocratic leader (Rugman, 2010).
Transformational leadership. This core of servitude is a capacity-building form of administration
wherein leaders prepare the subordinates for future positions through shallow inspiration. Leaders
here do a lot of assigning and delegation which serves as a role-play to career building of the
younger generation (Albrecht, 1980). This is achievable if the workers are willing not only to work
but to learn hence a high demand o employee involvement. This leadership style indeed
transforms the organization by developing the mindset of the employee in the long run which itself
is motivation. Walt Disney leadership was that of transformational because it wanted to create a
legacy of continuity which was achievable by putting in place the right people to manage when he
is gone (Andaleeb, 2001).
Laissez-faire leadership advocates for an autonomous approach to managing workers. It makes
at their disposition resources needed without a formal dispatch of these resources and with no
accountability report and no feasible reporting line. The power here has been let at the mercy of
the general assembly with a little concern overwork and justified concern over the staff.
Employees are trusted to deliver results with no control over the unraveling of operations. The
independence bestowed on employees will be advantageous if they are mature to handle tasks
and a bad idea as the unit of command is absent (Anderson, 2009). Apple’s Steve Jobs practiced
8. this wherein he acquired the most qualified leaders and allowed them to exercise their novelty in
innovation.
Amazon Leadership technique
Democratic leadership. Amazon has been earmarked over the years as the diplomat due to this
participative leadership wherein it involves all masses to the decision-making drawing table to get
their insight on current happenings. Amazon encourages the flow of ideas which can be realized
through discussions and also equality which is a motivating force, keeping a friendly working
environment with zerostress (Suseto, 2018). This style has encourage novelty in ideas, creativity,
and attacked future problems from their root cause.
Being viewed as the idealist, Amazon practices the Transactional leadership style wherein it
wants to see things go on the right way and as per the plan. It reckons the fact that some
employees share a different vision and they need constant control and check up to make sure
they satisfy employment purposes. Rewards and Sanctions happens to be the order of the day
for the low executives who happen to be the face of the enterprise. Their major concerns are
quality services (Amin, 1997).
9. LEADERSHIP SKILLS
Communication, Communication is known to be the lifeblood in all organizations and a good
leader must be one who relates with all instruments of his organization effectively and efficiently.
A leader must be a good receptor and transmitter of information in a module that could be
understandable by all. The enterprise can never function without information and leaders are the
initiators of communication (Aaker, 2000).
Vision. Borrowing from Jack Welch who said, “Good business leaders create a vision, articulate
the vision, passionately own the vision, and relentlessly drive it to completion." a leader must be
a visionary. He must be able to ascertain the big image of the organization in the coming years.
A visionless leader cannot lead the organization because there is no direction. Good leaders must
set pave ways and must act in objectives to attaining the vision. This vision will have to be
communicated to the subordinates to effectively lead them.
Integrity. This centers around doing the right thing and being accountable at all times. A leader
shows the way by being the way and must do what he like his subordinates to do. A leader's key
quality is to be that of integrity which is a virtue that shuns all acts of immorality at workplace,
bribery, and corruption and exerts an exaggerated amount of respect of employees and
selflessness towards organizational goals (Services Marketing, 2000).
ACCOUNTABILITY. Though being the boss, a leader must be ready to accept the blame from
the actions of the team members and takes corrective actions to remedy the situation without
shifting the blame to the core members. H is at the forefront ready to absorb all corporate shock
ready to give credit to whom due and encourage them for actions all to build trust among the crew
(Baker, 2000).
Positivity, the mood of a leader is the motivation of the team members. Though the odds of failure
are alarming, giving up is never a solution. Leaders need to be positive in all situations. Having
10. an open mind and the drive to break all odds for success is a skill a perfect manger should have.
He should be able to see a way where there is no way. A good leader inspires his crew with a
positive mindset and behavior. A good leader is a fighter (Review, 1991).
About Amazon, the leaders should focus more on the employees while keeping an eye on the
goals and objectives. The corporate machine behind the converting of vision to reality is
employees and hence must be regarded upon with a degree of caution. Leaders must have
empathy wherein they feel and understand the malaise of those contributing to the success of the
enterprise. Leaders should develop a personal connection with the team members to understand
their plight and not assume it. This will enhance the work culture, environment, and team loyalty
(Rugman, 2010).
11. QUALITY MANAGEMENT
QUALITY MANAGEMENT IMPORTANCE
Quality management is that planned managerial activity of ensuring a level of excellence to all
processes, operations, and end products to attain and maintain customer satisfaction and brand
loyalty. This is a planned activity that ensures, planning which entails setting standard and work
principle and acceptance criteria. Do, which is the act of getting work done, controlling seems to
identify shortcoming in the process. Discrepancies are always set in with the act, remedial
measures are taken and the good is delivered for consumption awaiting third party review
(Creech, 1994).
Quality management ensures improvement in performance to meet required service or product
standards which goes a long way to augment the quality of commodities. Quality is of distinct
importance to the success of a commodity in the market. The value of an enterprise is measured
by quality ranging from services to products and even after-sales services. Quality too
distinguishes a product from another through its distinct features and quality standards. Much
focus is on quality rather than quantity because clients now want to add value and not physique.
Quality Management can avoid negative reviews from clients by ensuring proper checks and
hence fostering customer satisfaction which burst to the gates of customer loyalty. Quality
management is a tool of precision to make sure that the goods delivered to the clients are of
indicated quality with zero defaults or damages. With Quality management we are sure of the
quality of goods are third parties receive and the extent of satisfaction could be predicted. Hence
proactive management (Meredith, 2010).
Quality management is important because it meets the demand of clients to the point of precision
with zero doubts. With quality management, organization design and create the exact product
12. which the customer wants, desires and expects. This is directed to reduce losses and disgruntled
feedbacks.
Quality management will improve productivity and augment organizational revenues. With the
smooth functioning of other departments that work hand in gloves to produce a top-notch service,
the firms will reduce the number of losses encounter in a faulty product, returns, and even
lawsuits. All these will be directed in revenue and goodwill which will go a long way to improve on
organizational health since the enterprise will be a happy one.
Furthermore, unnecessary procedures will have to be removed to match efficiency and
effectiveness and also improve collaboration within employees. They will need this coordination
to produce faulty free products at the right time for the right audience. Hence will reduce waste
and inventory
TECHNIQUES AND TOOLS OF QUALITY MANAGEMENT
The entire strategies are known as the tools and these tools are; Pie Chart and Bar Graphs,
Histogram, Run Charts (Pareto Analysis), Force Field Analysis, Focus Groups, Brainstorming and
Affinity Diagrams, Tree Diagrams, Flow Charts and Modelling Diagrams, Scatter DIAGRAM,
Relation Diagram, and the PDCA (PLAN-D0-CHECK-ACT).
The PDCAcycle lays down the procedure the team mustdo to achieve the stated required growth
planned (Coffey, 2013). It involves or begins the entire production process by planning. Planning
is a lump sum process that harbors in its entity different processes like research and skills like
communication. Planning on execution is carried not what is expected by the shareholders but
what is expected by the general stakeholders. From planning, there is the execution phase which
is done as per the plan without leaving out supervision (Arden, 2009). It represents the Do phase
of the cycle and sets standards for measuring performance in the project. From doing, we check
first check the results of our finding which is very important to document and disseminate to the
13. parties concerned like the manager of the project. Also, it is controlling and evaluation. Therein,
we have an act which is delivery, review, feedback, and modification if needed or required. The
system aim at proving quality on the project because it involves the integration of plan, control,
and evaluation module (Nunes, 2013). This triad aims to improve qualities at all stages of the
project execution phase. The Diagram below depicts the PDCA CYCLE (Harris, 2010).
Figure 4: PDCA CYCLE Source: Wikipedia
The Pareto analysis is a problem-solving approach that is going to aim to identify possible risk,
their cause, and possible effects and sees how to reduce, transfer, or mitigate the risk in
question. It makes mention of the 80/20 rule which holds that 80% of output results from 20%
input at all levels and graphically represented by a bar chart.
Finally, the fishbone diagram otherwise known as the Ishikawa diagram is an analysis that
determines the cases of crisis in the project and how to eventually suspend them. This is done so
that the firm is never taken by surprise should in case a crisis happens to a project (Boxersox,
n.d.). That is to determine the various causes and through brainstorming, solutions are easily
derived in cases of occurrence. It is used when they want to identify the causes of certain
problems to a project when on a mission to deliver quality results (Coffey, 2013). With this, the
root causes of problems are attacked to prevent repairs.
14. Figure 6: Fish-Bone Diagram Source: Wikipedia
Organizational CHANGE MANAGEMENT
Organizational change is that structural sift of technology, policies, operations, reporting lines,
strategies, and culture from a present to a future desired one to boost efficiency and
effectiveness in an enterprise. Changes within the enterprise are caused by forces ranging from
within, to out of the organization (Standford, 2014).
Internally, the change in the corporate demographic influence changes, with a change in the
gender or age structure being recruited into an organization, will compel that organization
operation to change. Its policies are going to be frequently reviewed to avoid redundant structures.
Diversity and reaction to work in such an organization is forced to change positively as well as
negatively (Aguinis, 2014).
The improper flow of work and the great disparity between planned performance and actual
performance can drive the mission of the enterprise to change. A change in corporate objective
could be masterminded by the reaction to work which could have affected the performance of the
organization which has led to a constructive change. With the deepening of profit margins,market
operations are bent on slowing down which could affect the flow of decision making.
15. The change in organizational structure, administrative systems, services, and products is an
internal influence on the organization which is a planned influence of change that moves or
changes with some influences from the external environment (Thomas, 2010). These changes
are being effectuated by corporate personnel who are being led by the wind of change affecting
the entire internal environment.
Externally, rapid technological innovation, influences the change in an organization. Tech
innovation is a system that has proven over the years to cut down operational cost, provide error-
free services and save resources and avoid wastage. This model is of great advantages and when
the producers finally manufacture these machines, there is bound to be a change in the
organization.
Furthermore, augmented communication and revolution in processing information cases
organization to change their processes and procedures. This force is a determinant that is backed
by the innovation like fiber optics and wireless technologies, and with the need to properly
communicate with no hurdles firms change (Aguinis, 2014).
Competition and economic regulation is that external forces that force companies to change. To
be market leaders and be the lowest producer of services hence gaining a competitive advantage
and also to work according to government policies, firms are bound to change their internal
environments to be in regulation with the government.
Change within an organization is influenced by the government by laying policies like taxes and
other duties. By the clients, by requesting certain modifications and services, they change act as
a stakeholder to change.
Competitors on the other hand act as the threat to the survival of the business and to be ahead
of partners, AMAZON has to change its processes to maintain its stake in the market (A., 2013).
16. Employees too are stakeholders to change, the world is evolving and so are its instruments.
Employees end to feel an organizational change like a new leader, insurance scheme, or
protective equipment. This needs been directed to management leads to a change for better
performance.
Shareholders are the mover of change, they want to increase their value and in the search to
improve their share values they tend to propose changing modules to the board which can go a
long way to cut costs and improve efficiency and productivity. This is always evident in
technological change (Kaplan, 2019).
17. CONCLUSION
Conclusively, change management, leadership, and quality management are aspects of the
organizational operations are forces that are very instrumental and must be handled with caution
for the long term sustainability and short term profitability of the firm. This report justified the
different management, leadership styles, and skills that excellent managers could portray at their
various working points. Quality management happens to be the core value to all organizations,
his report will ascertain this statement by evaluating the importance of quality standards to
Amazon. Finally, we all know that change is inevitable to the organization and very instrumental
in organizational success and development. This report efficiently evaluated change
management, leadership, and quality management in Amazon while giving a brief to be a better
manager and a leader with integrity.
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