How does Amazon. com use their digital channels to achieve success? Management is the process of gathering, analysing, planning, organising and planning of an organization to achieve organization objectives (Chaffey and White 2011). Amazon. com is managing their digital channels well hence they have been successful. Management have evolved several stages up to date. Between the years 1771-1858, Robert Owen proposed major legislative reforms which could improve the employees working conditions; between the year 1792-1871 Charles Babbage championed for the concept of division of labour and specialization in management; Andrew Ure in the year 1778-1857 argued that management should be a separate discipline which was also supported by Charles Dupin.
A late entrance in the debate was Henry R Towne between the years 1844-1924, he supported the arguments of Charles and Andrew of studying management as a separate discipline and further emphasises on the good business skills in running and managing business (Jones and George 2010). Amazon. com have resorted to use the last management thought by Charles Dupin in achieving its objectives in digital book selling activities where the customer behaviour are being studying and managed separately from other disciplines. Effective management comprises of some basic elements which includes; good time management skills, proper analytical skills, communications skills and leadership skills (Bass, 1990).
The managers must have planning skills in order to plans for organization activities and both inter and intrapersonal skills. Amazon. com are well organized with good organization structure which as enable them to achieve their objectives (Bass, 1990). Amazon. com started its operation in July 1995 with a sole aim and mission “to use the Internet to offer products that inform, educate and inspire its customers. ” By the year 1999, Amazon. com was being ranked as one of the largest online based company in selling of books and music DVD and CD’s.
The Amazon. com website was one of the most visited website all over the world with over 4.7 millions books and DVD’s being sold online. Other services like computer games, video tapes and audio books were also on sale. It owned the largest share of online books which were being sold and was operating in over 160 countries world wide (clouse and Spergueon, 1995)Management theories can be classified into four major approaches which can be used by any company.
First is classical approach which comprises of scientific management, bureaucratic management and administrative management. Second is the Behavioural approach to management which comprises of Hawthorne studies, Maslow need hierarchy and theory X and theory Y. the third approach is quantitative management approach which uses management science, operation management and management information system management approaches. Lastly is the modern approach of management, this comprises of system theory of management, contingency theory and emerging approaches in management (Jones and George 2010). Amazon. com has combined the above management approaches in order to achieve their objectives and targets.
In classical approach, Amazon. com is using administrative theory of management approach in delivery to their customer. Administrative theory majorly focuses on the principle that managers could use to internally coordinate the activities of the organization. This theory was majorly championed by Henry Fayol between the years 1841-1925 (Jones and George 2010). The organisation of the Amazon. com actually symbolizes the use of this theory concerning its structure of management, the communication channels and reporting channel.
The company is headed by the president who the most senior, followed by five directors then chief finance officer followed by chief technical officer up to the officers in lower ladder. These depict the use of administrative approach of management. The fourteen principle of Fayol is well captured in the management structure of Amazon. com, these includes; (Jones and George 2010).