22 Jun 2022

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Amazon's Warehouse Management

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Academic level: College

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A manager is an individual who organizes people to accomplish a goal. It is a job that is as old as human but continues to gain in its popularity as the society becomes complex. Individuals can be at the center of high innovations, but it requires management to turn the innovation into products and services that can benefit the consumer. From an academic perspective, management is a younger discipline often associated with Fredrick Winslow Taylor. His focus was managing the factory and the workplace to produce more goods from the same employees. The goal remained the same even for managers who followed. Despite there being many theories that explained the evolution of management, it was Peter Drucker who introduced a new dimension when he argued that an approach that compared human beings to replaceable inputs in an industrial environment was flawed. He used the term knowledge worker to refer to individuals whose work involved manipulating information and knowledge and not manual labor. Taylor's management style involved four things; planning, organizing, directing and monitoring. Drucker on his part added motivating talent workers to give their best. 

Organizational Background 

Amazon was founded in 1994 by Jeff Bezos its current CEO and is one of the leading global online retailers. The company is headquartered in Seattle Washington. It has a retail website, and its shipping services reach seventy-five countries. The company has an assortment of products that it offers to its online customers. The Amazon Kindle and the Fire Tablet are some of the product lines owned by the company. The company's mission is to be the Earth's most customer-centric company where people can find and discover anything they want to buy online. The firm uses growth as its corporate strategy to achieve its goal. The company website attracts a hundred and seventy-five million visits every month which is slightly lower than the combined figure for eBay and Wal-Mart the most significant competitors (Amazon, 2015). 

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Overview of the Historic Success of Amazon 

Jeff Bezos resigned from D. E. Shaw in 1994 to pursue his dream and the success of Amazon evidence the fact that he was determined to establish a world-class company. His desire in seeking the company was to shield himself from the regrets that he would face when he reaches eighty if he is adamant to quit a Wall Street job at the age of thirty. Having seen the potential of the World Wide Web, Bezos decided to exploit its capability to form a reputable company that has dominated e-commerce sales. The company has experienced a 14.8% year over year growth and ranks second to Apple in the Gartner's Supply chain popularity conducted in 2012. The company has the potential to continue expanding its operations as e-commerce keeps growing at an incredible rate. Since its incorporation in 2006, the company has continued to be the most customer-focused organization on the globe through innovation and has continuously continued to expand its customer base. The success of Amazon can be attributed to its extensive promotional relationships with established internet players. The CEO used acquisition and continuous expansion of the product lines as its expansion strategy. Amazon has successfully managed to overcome the changing business environment to maintain its performance and increase its market share (Amazon, 2015). 

Amazon is led by fourteen leadership principles which according to the company are not just wall hanging. The policies work hard just like the company, and all management levels must use them on a daily basis. The principles guide in the discussion of new ideas for some projects, deciding on a solution to a problem faced by the customers or even while interviewing candidates for a position in the company. The principles make the company peculiar (Amazon, 2015). 

The fourteen principles are as follows. (1) Customer obsession- where leaders are expected to start with the clients and move backward and are required to earn and keep customer trust. (2) Ownership whereby leaders are expected to think long term and never to sacrifice long-term values against short-term results. Leaders are supposed to act on behalf of the company and not just their team. (3) Invent and simplify whereby the leadership expects and requires innovation from the team and try to establish ways of streamlining the changes. They are aware of the external environment and search for new ideas from different sources. (4) Are right, A lot in which case the leaders have strong instinct and judgment. (5) Learn and be curious as leaders are supposed to continue learning and improving. They should be interested in new opportunities and strive to explore them. (6) Hire and develop them- the leadership of the company raises the performance bar with every hire and promotion. They can recognize exceptional talent in the organization and willingly move them to appropriate positions. They should be on the forefront in succession planning by developing and coaching others. (7) Insist on high standards by maintaining such and continuously raising the bar and driving the team to offer high-quality products, services as well as processes. They should ensure that defects are fixed and not sent down the line. (8) Think big by communicating bold directions that improves the results service to the customer. (9) Bias for action by taking calculated risks promptly. (10) Frugality whereby leaders achieve more with less. By being constrained, individuals become resourceful, self-sufficient and able to invent. The company can maintain a sizeable workforce, budget, and expenses. (11) Ear trust by listening attentively, speaking candidly and respectfully treating others. They benchmark the employees of the organization with the best. (12) Dive deep by operating at all levels, remaining connected to the details, conducting frequent audits and take corrective actions when discrepancies are recorded. (13) Have Backbone; disagree and commit to respectfully challenging the decision whenever they disagree and is applicable in conditions where doing so can be uncomfortable or even exhausting. They should have tenacious, and conviction yet does not compromise for social cohesion purposes. (14) Deliver results where leaders focus on the critical inputs for the business and ensure that they are delivered in the desired quality and timely manner (Amazon, 2018). 

The management style of Amazon has received criticism with articles running in the Wall Street Journal and New York Times describes some of the experiences faced by employees of the company. Some of the lessons are as a result of the fourteen principles which have been termed as rigid and unfriendly to a dynamic workforce. According to Streitfeld (2018), the company has rules that are part of its daily operations including hiring and meetings or even during lunch times. The principles are considered to be the norms that guide all employees of the company in the various countries. The article received a lot of criticism after kit described the management of the company as ruthless. 

According to an article by Stefanova (2015), the management practice of Amazon is described as digital Taylorism. According to the author, the management style is hurting the company's stock. The organization is perceived to utilize Fredrick Taylor principles of scientific management by applying the fourteen principles and placing too much importance on the customer. According to the article, scientific management achieves its short-term objectives. The practice cans however hurt an organization by eliminating collaboration since it places the employees at the periphery are fearful of losing their jobs. Doing so reduces the chances of collaboration and teamwork. It also demoralizes them due to its focus on near-sighted goals. 

As a new manager in the new plant and responsible for overseeing a hundred employees who include ninety packers and ten supervisors, the management style needs to incorporate new dimensions while observing the fourteen principles. The skills and knowledge obtained from the BABA degree and previous experiences will be useful in managing the plant to realize exceptional performance. Being innovative the entire process and incorporating the inputs of the subordinates will be helpful to in enhancing a conducive working environment for the whole of the group. 

Despite receiving criticism, the management practices at the company have contributed to its success and continue growth. The company has managed to expand its market share and reach new customers with a collection of products and services. Maintaining such a workforce requires a stable structure that unifies the company and gives it strategic direction. Amazon ability to satisfy its customer needs despite the fact that the geographical location indicates the strength of the management to steer the company using established rules and regulations that govern all employees irrespective of their position. 

As a manager of the new plant and managing, a hundred employees, the functions of management can be essential in ensuring effective management and leadership. The functions enable managers to solve some of the emerging problems, motivate employees and achieve the established goals of the company. The functions are essential in separating the management process from the rest of the business functions like accounting and finance and marketing. 

Planning ensures that the goals are defined, and the most effective course of action is taken to achieve the desired goal. Planning will involve flexibility as the manager engages the rest of the employees of the plant. Adequate knowledge of the company and its plans are useful at this phase. Organizing will be helpful in controlling the entire structure if the station. Such an arrangement enhances the daily operations of the plant. It will be useful in designing tasks as well as responsibilities to the supervisors and the junior employees. The function will be helpful in identifying the skill set of employees and deploying them to appropriate positions where they can fully utilize their competency. It will also help in establishing the structure if the plant and the chain of command. The staffing function deals with the recruitment of suitable employees who will be positioned at the factory. It also deals with the employee's needs of the plant by enabling the manager to hire qualified personnel for the right jobs. Doing so will ensure that the organization achieves its stated objective. The function also includes training and development promotions, appraisals and transfers. It addresses the staffing needs of the entire plant. Coordinating helps in controlling the organizing, planning, and staffing management functions. It ensures that the activities are in sync for the good of the organization. The function always takes place in meetings and planning meetings with other staff from the plant. Doing so ensures that all teams are on the same footing regarding the goals and objectives of the station. The function involves communicating, supervising and directing. Controlling is the final management function and ensures that the functions of the plant are in place and operating according to the requirements. It involves the establishment of performance standards and monitoring employee output to ensure that they meet the criteria. It enables problem identification and creates new performance standards. 

References 

Amazon. (2018).  Leadership Principles amazon.jobs . Retrieved 7 January 2018, from https://www.amazon.jobs/principles 

Amazon. (2015). Amazon.com Inc Annual report 2015. Retrieved January 06, 2018, from https://www.sec.gov/Archives/edgar/data/1018724/000101872416000172/amzn-20151231x10k.htm 

Streitfeld, J. (2018).  Inside Amazon: Wrestling Big Ideas in a Bruising Workplace Nytimes.com . Retrieved 7 January 2018, from https://www.nytimes.com/2015/08/16/technology/inside-amazon-wrestling-big-ideas-in-a-bruising-workplace.html?_r=0 

Stefanova, K. (2015).  Forbes Welcome Forbes.com . Retrieved 7 January 2018, from https://www.forbes.com/sites/katinastefanova/2015/10/24/why-amazons-management-practices-will-likely-hurt-its-stock-price-in-the-long-run/#3d9309f577ef 

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