Discuss about the Applying Strategic Management Theories.
Management theories and concepts are integral part for any organisation. Managers of an organisation are responsible to undertake the various managerial activities that are best suitable for the organisation. The aim of this study is to evaluate the management and work culture at the online retail giant Amazon. An evaluation of the management activities carried on in this organisation shall be explored. Based on evaluation, certain recommendations shall be made that could be regarded as the best practice for the managers to undertake that would directly improve the workplace activities.
Analyzing the case study on Amazon, it has been observed that the organisation has been facing certain challenges in terms of its managerial activities.
Poor condition of the employees: The management has been accused of tearing apart the business ideas of the employees along with secret transmission of messages inside the organisation (Kantor & Streitfeld 2015). In fact, it has also been observed that the employees were facing major sabotage issues as well. The eligible employees are not recognized in the organisation while the poor performers are directly terminated from their posts
Health and safety concerns at the workplace: Concerns related to the neglect of the occupational health and safety standards of the company’s employees was evident. From the case study, it has also been observed that the situation of the employees working at the warehouses is even worse (Kantor & Streitfeld 2015). The employees must work under very high temperature. Thus, with the overall analysis, the Company prioritizes focused on improving their relationship with customers to increase their profitability rather than improving the internal condition.
iii. Domination of the leader: Jeff Bezos the Chief Executive Officer of Amazon has been declared as the fifth wealthiest man and his company has been doing their business successfully. Amazon has a huge customer base and has been successful in the field of online retail business (Kantor & Streitfeld 2015). The Company has also gained fame in customer servicing as well. However, the company’s success and profitable running is due entirely to the employees, but the organisation is degraded by not upholding the rights of their employees. The only thing that motivates the working employee is the “Big Brand”.
More focus on improving internal organization: With the overall analysis of the case study it has been found that the CEO, Jeff Bezos does not undertake the popular managerial approaches like motivating employees or providing employees certain opportunities to take part in major business decision making towards the organisation. The Mr. Bezos has been found to look for better opportunities in terms of innovations and made approaches to expand the profitability of the organisation (Kantor & Streitfeld 2015). Thus, it was clear that no such positive approach has been made to improve the condition of the employees.
Therefore, it can be easily ascertaining that the management has always focused on improving the image of the organization among its stakeholders. Little attention has been made on the betterment of the employees.
Based on the problems identified above, several management theories can be proposed to improve the organisational situation.
As it has been evident that the employees at the organisation do not enjoy any kind of benefits and to some extent the employees are not given the basic rights and opportunities to perform well in the organisation, which is important to motivate them. According to the expectancy theory, if the employees are treated well in an organisation, they can be expected to work with more efficiency in the organisation (Kantola 2015). Vroom’s expectancy model is based on motivating the employees based on reward and recognition. It has been assumed that to motivate the employees, it is important to provide them reward at the right time. On the other hand, if the employees are not rewarded accordingly, they would not serve the organisation properly (Miner 2015). Various methods of rewarding include providing incentives and bonuses and also giving the eligible employees appropriate position promotions.
The Schwartz value model, talks about motivating employees and its direct influence on the organisation. It has been stated that the performance of the employees depends on certain values. The management of the organisation is responsible for undertaking better approaches to meet with these desired values and improve the standard of the work (Modaff, Butler & DeWine 2016). The employees should be served with some desired goals and objective. These values are depended on the importance of priorities and importance that shall eventually help to improve the overall organisational productivity (Morschett, Schramm-Klein & Zentes 2015). According to this model, it is equally important that care should be given on the health and security of the employees that they appreciate the organisational contribution towards them (Ferlie and Rosenberg Hansen 2016).
The organisation still follows a strict bureaucratic leadership style and has prohibited the employees to make any kind of participation in creating any control or ownership over the organisational activities. Strict control is kept on monitoring the activities of the employees. There are various leadership styles that are practiced in an organisation. Bureaucratic leadership style is the type of leadership where the official duties are fixed to the higher authorities, these leaders are responsible for making major management decisions and the overall activities of the organisation (Nahavandi 2016). No authority is given to the employees of the organisation.
Transformational leadership is the leadership approach where the higher authority works along with the employees and identify the changes needed in an organisation (Avolio and Yammarino 2013). In this respect, the eligible employees could easily guide the management in creating a better vision for the organisation and execute any kind of change that would drive the organisation in a positive direction. When transactional leadership attempts are made, there remain the chances of inclusion of better innovative ideas and benefits for the organisation.
If the technological advancement of the organisation is taken into consideration, it must be said that the organisation has been utilizing every bit of technological advancement to improve their business activities (Latham 2014). The campus of the organisation is a big tech and has all the technological equipment installed that would make their work simpler, easier, and faster. The conventional leadership talks about the leadership approach inclined towards the use of technology. These types of leaders rely more on the advancement of technology rather than depending on their consumers (Harvey, Hill & Landis 2014). These types of leaders are rather decisive and do not consult with others present in the organisation prior making any decision. These leaders are more focused on the ultimate result of the activity rather than undertaking the approach of understanding the needs of the employees.
Keeping the condition of the organisation and the leadership approach that is evident in the organisation, several recommendations can be made.
Better leadership approach: As it has been found that Bezos has not been successfully acting as a good leader which has been evident from the poor condition of the employees, it is highly recommended that better leadership approach should be taken (Nahavandi 2016). This might require changing the organisational culture and the form of leadership style that the organisation is accustomed to. Therefore, it is recommended that the organisation would undertake transformational form of leadership where the employees shall also be given the opportunity to participate in the business activities.
Introduction of motivational factors: The organisation lacks the factors that motivate the employees. The employees are not satisfied at all and there is urgent need of introducing certain motivational factors that would eventually create better opportunities for the employees to participate in the organisational business activities (Morschett, Schramm-Klein & Zentes 2015). If the company undertakes this approach, it is expected that the employees will be boosted and their spirit to work for the organization would therefore increase.
iii. Better health and safety standards r the employees: The organisation completely lacks any approach towards health and safety measures and the employees show their grievance towards the same. “Amazon came under fire in 2011 when workers in an eastern Pennsylvania warehouse toiled in more than 100-degree heat with ambulances waiting outside, taking away labourers as they fell. After an investigation by the local newspaper, the company installed airconditioning” (Kantor & Streitfeld 2015) Therefore, to improve the performance of the employees they should be availed with proper resources that would take care of their health and safety needs (Ferlie & Rosenberg Hansen 2016). So, undertaking better approach for improving safety measures is indeed important.
Conclusion:
With the detailed analysis on the case study, it has been found that the organisation lacks proper leadership approach and this is the reason the employees are found to suffer. There are other concerns as well that has de-motivated the employees to work for the organisation. Based on these findings, it has been recommended that the leader needs to come up with better leadership style along with certain motivational factors that would eventually help the employees to participate in the major organisational activities. This way, the organisation can improve its present condition.
References:
Avolio, B.J. and Yammarino, F.J. eds., 2013. Introduction to, and overview of, transformational and charismatic leadership. In Transformational and Charismatic Leadership: The Road Ahead 10th Anniversary Edition (pp. xxvii-xxxiii). Emerald Group Publishing Limited.
Kantola, J., 2015. Organizational Resource Management: Theories, Methodologies, and Applications. CRC Press.
Kantor, J. and Streitfeld, D., 2015. Inside Amazon: Wrestling big ideas in a bruising workplace. New York Times, 15, pp.74-80.
Landis, E.A., Hill, D. and Harvey, M.R., 2014. A synthesis of leadership theories and styles. Journal of Management Policy and Practice, 15(2), p.97.
Latham, J.R., 2014. Leadership for quality and innovation: Challenges, theories, and a framework for future research. Quality Management Journal, 21 (1), 5.
Miner, J.B., 2015. Organizational behavior 1: Essential theories of motivation and leadership. Routledge.
Modaff, D.P., Butler, J.A. and DeWine, S.A., 2016. Organizational communication: Foundations, challenges, and misunderstandings. Pearson.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management. Springer.
Nahavandi, A., 2016. The Art and Science of Leadership -Global Edition. Pearson.
Rosenberg Hansen, J. and Ferlie, E., 2016. Applying strategic management theories in public sector organizations: Developing a Typology. Public Management Review, 18(1), pp.1-19.
Tyssen, A.K., Wald, A. and Spieth, P., 2013. Leadership in temporary organizations: A review of leadership theories and a research agenda. Project Management Journal, 44(6), pp.52-67.
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