1. Overview of Amazon:
Amazon is the largest internet based retailer in the world today. It was started in 1994, by Jeff Bezos and has its headquarters in Seattle, Washington. In the beginning, it was just a simple online bookstore, which later branched out rapidly, to sell anything and everything a person needs, including groceries. As of 2016, this company’s revenue was US $135.98 billion, and their net income was US $2.371 billion. Across the world, this company has an enormous customer, base and is renowned for its efficiency. This is because of the 341,400 permanent employees that work in the background of this multibillion-dollar business.
Although Amazon has an amazing rapport with its customer base, they seem to have a rather negative track record with their employees. Throughout the years, various employees, and ex-employees have criticized the company’s policies, and working conditions. The aim of this report, based on the issues brought to life by the BBC Panorama documentary at amazon, is to provide alternate solutions and strategies for amazon to improve their working conditions, as well as their rapport with employees. This will be done with the use of various management and motivational theories.
2. Issues at Amazon:
Former and current employees at Amazon have criticized the management styles and poor working conditions currently present. The most important issue to be raised tis the overall management style at the company. They are believed to be strict and have a commanding leadership style. It can be said that this is the basis of any problem, because it is the leaders’ responsibility to ensure the safety and wellbeing of the employees that work under them, especially with working conditions not being maintained.
The warehouses have motion sensing lights, which there is nothing wrong with. However, many employees say that these lights are not maintained and often do not work. They must find items in the dark, which is nearly impossible; and are required track their way through many narrow pathways surrounded by shelves filled with different product. If there would be an accident, it could cause serious or even permanent injuries. The workers also claim that they have extremely long working hours with unrealistic expectations they must meet.
3. Management Issues at Amazon:
There are many management issues at Amazon, of which the most important would be their Autocratic leadership style. There is no room for self-driven performance, simply following orders. This top down communication method shifts focus towards productivity and efficiency without considering the employees' wellbeing and needs. This caused the employees to get exhausted, and bored of doing the same job over and over, with no room for progression. This entire perspective needs to be changed to be more balanced.
Another issue is that there are unrealistic expectations of the workers. People are expected to reach a certain target per hour, and most targets are set above a person's abilities. If they do not meet these targets, they get punished. This could be considered a violation of human rights, as there are ten hour shifts with constant pressure to perform better through the day.
The sickness policy or 3-point-system is also unreasonable, as workers have added pressure to work even when they are sick, or injured, in fear for their job. Employees have 3 points a month, and get half taken of for tardiness, which is alright. They get the same taken off, if they get sick or injured while working, and they get a whole point off if they miss a day. This puts unreasonable pressure on employees that are already working in extenuating circumstances. This is the reason behind the high turnout at amazon, as many workers cannot cope with the pressure.
a. Theories and solutions to management issues:
The Simplest solution to most of these management problems is a change in the management style at Amazon. Their current method can be linked to Douglas McGregor’s theory X. This has many adverse effects as the staff do not feel valued and have limited opportunity. However, if Amazon was to transition to theory Y, then most of these issues would not exist. There would be more open communication between everybody, and the staff would feel appreciated. This theory would also enable them to progress further, and be given more responsibility.
Additionally, they should also lower expectations and make them more reachable. The strictness policy requires changes as well. It is not fair to have points taken off for getting sick, or injured on the job. They should also be given limited sick days instead of having their jobs on the line for health-related issues. As per the lights, and poor working conditions, the open communication would enable the staff to have any concerns addressed, or changes implemented.
4. Motivational issues at Amazon
Essentially, Amazon has been demanding increasingly high targets and expectations of their workers. Additionally, the poor workplace of the company makes the workers suffer physically. What’s more is that the company is taking to an autocratic leadership style. The managers dictate the orders and the workers simply follow them. This top-down communication way that the Amazon has could means that the company considers the productivity than workers’ welfare. For these reasons, their managements are related to the scientific management. According to Smith (2012), Taylor’s the scientific management theory illustrates that his theory normally adopts improving the level of productivity with lower unit costs. it might let the employees exhausted and makes them bored with repetitive work. Hence, the Amazon should search what is the better management strategies for both the company and its employees.
In Amazon, the workers should reach overbearing targets in a few minutes. This severe management makes many employees succumb to the extreme pressures of their workplace. For instance, the stairs with a heavy trolley, motion-sense lights that do not work, and the beep sound from the scanner. Thus, the motivation methods are an important task for the Amazon to run the company safely and efficiently. Smith (2012) states that Maslow’s hierarchy which is structured by 5 levels of needs. There are the essential factors for a human being such as physiological needs, safety and belonging. they could be compared with an environment of the workplace, communication with managers and proper rewards.
a. The theories for realistic improvement:
For motivating their employees, there are financial and non-financial motivation methods. In financial methods, the Amazon can take the performance-related pay such as bonuses system and piece-rate pay that pay per item produced. Mainly, the theories that the higher productivity makes a success of the business such as Taylor’s scientific management and Fayol’s 14 principles of management follow financial motivation. however, there are non-financial methods either. For instance, the best employee of the month, job rotation, Health insurance and company discounts. These motivation methods are taken by Hawthorne effects and Maslow’s hierarchy of needs theory. Especially, Hawthorne presented When the workers find trust and respect from the company, they will get not only more responsibility on their work and be motivated but also it might lead the higher productivity in a long-term.
The most important thing of management is the balance between the productivity and motivation. These days, many companies prefer the management methods for productivity. They usually do not consider workers as human beings. Therefore, the employees are not satisfied with their work. However, if the company is really concerned for successful management in long term, they should support their employees to find beyond the meaning of their simple works. when the workers understand their value as a part of the society, they will work increasingly harder for the company.
5. Current Government Mental health initiatives:
In the United Kingdom, the government policies are currently going through many reforms. There are however a few points that have been proposed to further improve the policies for mental health in a workplace. Firstly, the government looks to strengthen or create partnerships with employers and companies to better understand and monitor the mental health of workers. The Prime Minister has appointed people to create reports and reviews to ensure that the health and safety standards are met. These people will also work with the companies and help them understand how to ensure the safety and needs of employees with mental health are met. This will enable the government not only to monitor the standards set by the companies, but also introduce workshops and training courses to management to better assist with employee well-being and mental health.
In addition to that, the government also has plans on investing in a new digital mental health services package. Currently, a digital mental health care package with a starting investment of 67.7 million has been promised. This would enable everyone to have ready access to mental health services, and enable employees to be informed of standards and mental health wellbeing. People who are worried about stress, anxiety and more serious conditions can check online to better understand their situation. If needed they can have a face-to face sessions.
6. Conclusion:
Amazon, although it is known for its great customer service, has multiple issues on the inside. It starts from their management style, which is similar to theory X, and should be changed to theory Y. The working expectations should also be improved, as they are currently unreasonable. The workers should also get various financial and non-financial benefits, such as company discounts, and health insurance to help boost their morale. Finally, if Amazon cannot continue on their current path, as there are many government reforms underway to protect the workers’ well-being. In the future, Amazon will be caught out if they do not change their strategies.