Amazon has an organic organizational structure characterized by cross-functional teams, free-flowing information, wide spans of control, and decentralization. This structure supports Amazon's strategy of innovation through experimentation and internal entrepreneurship. With over 500,000 employees, Amazon's large size requires some departmentalization for management. Its technology-focused environment also influences the organic structure. The structure provides opportunities for employees while also creating a cutthroat work culture where performance rewards are not always merit-based.

1. Organization
Structure of Amazon
Group 5

2. Contents
• Organisational structure
• Elements of organizational
structure
• Disadvantages and advantages
of amazon’s structure
• Work ethics of amazon
• Amazon – Organic model
• Determinants of the structure
• Implementation

3. Organization Structure

4. What is
ORGANIZATIONAL
STRUTURE?

5. ELEMENTS OF ORGANIZATIONAL
STRUCTURE
Work
specialization
Chain of command Span of control Centralization and
decentralization
Formalization

6. Work Specialization
EFFICIENCY GAINS RELATION OF
PAYMENT TO SKILL
LEVEL
INCREASED
PERFORMANCE
ENCOURAGEMENT
OF CREATIVITY

7. DEPARTMENTALIZATON
FUNCTION PROCESS GEOGRAPHY CUSTOMER

8. CHAIN OF
COMMAND
IT IS A OFFICIAL HIERARCHY OF AUTHORITY THAT DICTATES WHO
IS IN CHARGE OF WHOM AND OF WHOM PERMISSION MUST BE
ASKED

9. SPAN OF CONTROL
IT IS COMMONLY USED IN BUSINESS MANAGEMENT
IT REFERS TO NUMBER OF SUBORDINATES A SUPERVISOR HAS.

10. ADVANTAGES OF
AMAZON
ORGANIZATIONAL
STRUTURE
• Over 240 million Amazon customers
worldwide.
• Many potential buyers are looking
for products only on Amazon.
• A fair bit of "Traffic" from the very
first minute without having to pay for
extra advertising.
• You don´t need your own Shop
Software.
• By using the option „Shipping via
Amazon" (FBA) you outsource your
entire shipping logistics and benefit
from low shipping cost.
• Well established Amazon partner
program for affiliates

11. DISADVANTAGES OF AMAZON
ORGANIZATIONAL STRUTURE
Amazon Sales Charge -
depending on the
product category
between 7% and 20%
With the option
„Shipping via Amazon“
shipping costs have to be
included in the sale price
Several providers of the
same product can result
a price battle
Possibly limited
opportunities to directly
influence the display of a
product
Amazon — a potential
competitor
Dependency of Amazon

12. Work Ethics in Amazon
Compliance with
Laws, Rules and
Regulations
Conflicts of Interest
Insider Trading Policy
Discrimination and
Harassment
Health and Safety

13. AMAZON AN
ORGANIC MODEL
• Cross functional teams
• Cross hierarchical teams
• Free flow of information
• Wide spans of control
• Decentralization
• Low formalization

14. DETERMINANTS
OF THE
STRUCTURE
• Organizational strategy
• Organization's size
• Technology
• Environment

15. Organizational strategy
Innovation strategy
Believe in
experimentation
Competitive
payments
Competitive
internal compition
Internal
eutreprenual
projects
Organic model
essential to
innovation

16. Organizational
size
MORE THAN HALF A
MILLION EMPLOYEES
FLAT ORGANIZATION
RIGOURS
MANAGEMENT
HIGH
DEPARTMENTALIZATION

17. Technology

18. An Insight of Work Environment in Amazon
Cutthroat work
environment
Ample opportunity
for them to build
upon their skillsets
The management
can be hit or miss
Employees receive
competitive benefits
and compensation
The company can
reward performance
without merit

19. IMPLEMENTATION

20. THANK YOU