The paper “ Problems Facing Amazon Company, Developing Solutions, and Strategies to Accomplish the Proposed Solutions ” is a dramatic variant of case study on management. Leadership plays an important role in ensuring employee motivation and engagement and shaping organizational culture. According to Northhouse (2010), companies are influenced by the leader’ s ability to develop strategies necessary to lead the employees and move the business forward. Amazon is faced with a number of challenges that have affected its ability to boost its competitive environment. Employees are considered the most important resources in any company and therefore companies need to motivate their employees in order to attain profitability and performance (Crossman, Bordia and Mills, 2011).
This paper will discuss the problems facing Amazon in accordance to the given case study. It will highlight the necessary steps that the company can take to solve the challenges and the strategies required to accomplish the proposed solution. Problems facing Amazon CompanyOne challenge facing Amazon is poor working conditions for the employees. Amazon has a stressful working environment and many employees have complained about the condition they are in when working in the company (Kantor and Streitfeld, 2015).
The leader encourages workers to tear each other apart in meetings and when sharing ideas. They lack work flexibility since they may even receive emails during the night when spending time with their families. The company has focussed too much on the customers and neglected the needs of the employees (Kantor and Streitfeld, 2015). Due to poor working conditions, the company has a high turnover rate as some workers leave or are fired during the yearly retrenchment process. When employees are sick, they are often edged out instead of being given time to recover (Kantor and Streitfeld, 2015).
According to stakeholder theory, companies should focus on satisfying all the stakeholders from the customers, community, government, employees, and shareholders. The theory argues that an organization that manages its relationship with all the stakeholders will survive longer and perform better (Fredrick, Bernard, and Barbara, 2011). The challenge with Amazon is that it has neglected the needs of the employees which can affect its operation in the long run. Another challenge facing Amazon is poor leadership style.
According to Coleman and MacNicol (2015), leadership plays a major role in ensuring that employees have the drive to perform exceptionally. Poor leadership style results in employee disengagement. Bezos can be considered a transactional leader. He is a micromanager who has set rigorous standards for his employees and is often uninterested in other people’ s opinions (Kantor and Streitfeld, 2015). Transactional leaders often influence the subordinates since it is in the best interest for them to do whatever the leader wants. Although this leadership is effective in achieving operational goals, it results in a high turnover rate and a lack of employee motivation.
Jeff Bezo has rejected many of the management approaches used by other companies and has designed his own which the employees regard as an intricate machine propelling and forcing them to achieve ever-expanding ambitions (Kantor and Streitfeld, 2015). There have been a series of incidences where employees could be seen crying due to the condition they pass through in their workplace. Employees have reported that Bezos often rebukes them, crush their ideas in meetings and is highly opinionated.
He never loses a chance to inform the workers that he is the CEO of the company (Kantor and Streitfeld, 2015).