Last one- Phyliss Young

Individual Project 4: Strategy Implementation

LaShonda M. Canada

American InterContinental University

Management 652

October 20, 2017

Introduction

According to Linden, Smith, and York (2013), the success of any Company within any industry is dependent on its human capacity. Therefore, regardless of the sophisticated nature of an organizational strategic plan, it is likely that such organizations may not realize their goals where the personnel are defective/ unqualified (Linden et al., 2013). Nonetheless, Amazon.com falls among the list of companies in the recent times focusing on understanding the benefits that the e-commerce/ online services have regarding human resource management. In an article by Ward (2016), Amazon.com is continuously absorbing graduates around the world within its business portfolio, along with opening up job opportunities to professionals within different fields. However, the business is also mentioned to be losing its employees to other established companies with the e-market such as Apple and Google (Ward, 2016). This paper will, therefore, focus on the human resource position for Amazon.com. The paper will also analyze the risk involved and the opportunities available for the human resource in the industry. It is also crucial for the paper to examine the strategic retention method for Amazon Company in preventing turnover. Relatively, the paper will research the emerging trends and the diversity within the online segment, along with the adoption level of new technology within the online industry, e.g., cloud services, and social media services such as blogging, and video sharing among others. Bestowing from Warrington, Abgrab, and Caldwell (2014), the human resource development is an ongoing process that demands continuous appraisal. Therefore, Amazon must conduct a detailed HR strategy to sustain its competitiveness (Linden et al., 2013).

1. The Industry Competitive Position

The opportunity presented by the online platform has attracted many global businesses to invest in these online trends with the aim of increasing their revenue scope (Warrington et al., 2014). For example, Apple Company is investing in iTunes services, online library services, and online App services to supplement and cut into the market share for e-commerce. Apparently, many businesses are gaining momentum and access into mainstream online markets. Some of these companies include Amazon, Microsoft, Apple, and Google among others who have expanded their services and diversified their portfolio of product and services in the online market (Warrington et al., 2014). However, these enterprises continue to encounter hurdles considering that technology is the cutting-edge for competition. Meaning, the competitive nature of businesses with the online market is determined by their ability to embrace newer technology, or even update their technology (Cascio, 2014). Furthermore, companies are adapting to strategic human resource development procedures in supplementing the online businesses need for competition (Warrington et al., 2014). Amazon.com is one of these online companies relying on human resource development strategies in equipping its staff on product and service delivery towards supplementing its online procedures (Ward, 2016).

2. Comparator Group Competitive Position

Some of the global organizations engaging in online service diversification besides Amazon Company include the Apple Company, Microsoft, and Google (Warrington et al., 2014). Nonetheless, Amazon Company has significantly expanded over the period to be regarded as one of the leading/ influential Companies in meeting global consumer e-business needs (FORM 10-K, 2015). The Company has also encountered various challenges a major one being high employee turnover.

Seemingly, Amazon Company is losing most of its employee to other established competitor in the online markets (FORM 10-K, 2015). According to Ward (2016), the turnover rate for Amazon has continued to influence its level of operations, as well as diminishing its publicity. Nonetheless, the Company has strived to overcome such negative publicity and high staff turnover by hiring fresh graduates and engaging in headhunting strategy for its staff (Ward, 2016).

3. Human Resource Risk

According to Linden and his colleagues (2013), the HR department within an institution is obliged to keep their staff turnover at a minimum to alleviate the problem of having to change the staff on a consistent basis. Ward (2016) attests that there has been a high employee turnover in Amazon owing to lack of sufficient policies on staff retention. Such weak policies have disadvantaged the enterprise which has in return incurred excess cost on continuous job advertisement and hiring of unqualified staff (Cascio, 2014). The high turnover rate has had a significant impact on Amazon. These effects include:

a. Negative Reputation

Bestowing from Linden and co-authors (2013), an enterprise that tends to alter its staff from time-to-time may be perceived in the eyes of the public as unstable and with a cynical publicity stunt. It is a common phenomenon for the public always to question the credibility of the firm to deliver where its internal reputation is under siege (Cascio, 2014). Therefore, Amazon needs to develop responsive policies to induce and sustain its workforce (FORM 10-K, 2015). Negative reputation as created by the high turnover situation for the firm means that Amazon employees do not have enough time to adjust to the required objectives of the business.

b. Lack of Progressive Culture for Amazon

According to Linden and fellow proponents (2013), it is likely that the veteran employees at Amazon pose some level of impact on its culture further affecting the performance of the firm. Apparently, the high turnover rate of veteran staff for Amazon only leaves behind the young/amateur employees who do not fully comprehend the enterprise culture (Ward, 2016). Agreeing with Linden and his colleagues (2013), new staff development requires considerably longer time to adapt to the organization existing culture. Therefore, changing of the organization staff is a hindrance to the staff development. Furthermore, high staff turnover reduces staff morale, as well as lowering the Company standards of productivity for Amazon (FORM 10-K, 2015).

c. Poor Treatment of Workers

Also, there has been complaining among the Amazon staff regarding the issuance of bonuses and incentive for exemplary work (Ward, 2016). The demeaning level of incentives and the failure to recognize the competitiveness and potentiality of young talents at Amazon also forms another reason for the high turnover at Amazon (FORM 10-K, 2015).

d. Unnecessary Expenditure for the HR department

Implementation of defective HR strategy may be not only time-consuming but also costly for an enterprise (Linden et al., 2013). Therefore, it is essential that the HR develop an efficient human resource cycle to avoid additional expenses on job advertisement and litigations (Cascio, 2014). Moreover, Amazon is also faced with the problem of losing its newly trained staff to competing firms in the industry, thus not benefiting the company from such imparted training (Ward, 2016). Such instances pose a risk to the Amazon HR department in training its workers. Also, the enterprise is rendering itself vulnerable to competitors’ threats owing to the failure of subverting the high turnover experienced for its internal staff.

4. The Human Resource Opportunity

i. Competitive hiring procedure

Trained HR personnel often conduct the employee recruitment procedure for Amazon.com on behalf of the management (Ward, 2016). Job advertising and the screening are usually performed using the Company’s official site, along with different social media sites where the enterprises get to select its pool of qualified applicant (Ward, 2016). The Amazon Company application process is also dedicated to attracting a pool of qualified personnel matching the organization job description. Substantially, the vast pool of staff for Amazon comprises of the college graduates and workers from other professional bodies (Ward, 2016). The job selection process for Amazon follows a comprehensive job description and specification process (Ward, 2016). Hence, the potential employees for the Company are usually aware of their expectation while working for the Company. In essence, such a comprehensive process capacitates the firm to reach out to the top skills required for its job functions (Ward, 2016).

ii. Job Training and Development

Amazon continues to offer specialized training for its staff as a means to mentor them in their career, as well as develop them to enhance the level of quality of services (Ward, 2016). The training delivered in the case includes relationship building and employee job security. Other forms of staff training include knowledge sharing, performance/ talent management, and strategic planning for Amazon (FORM 10-K, 2015). Besides, the HR department acts as a motivator in the business to encourage the staff towards realizing their self-efficacy. Amazon also has in place technology programs, e.g., databases, web servers, and resource retrieval to grow its human capacity (FORM 10-K, 2015).

iii. Enhancing a dynamic environment

According to Ward (2016), Amazon tends to present its employee with a dynamic work situation, with different department promising different opportunity for the staff. Therefore, such instances offer the talented employees' a chance to grow in the field and nurture their career (Linden et al., 2013). Moreover, Amazon is continuing to offer opportunities for graduates through diversifying its online business portfolio. Some of these diversified, dynamic working environments for Amazon comprises of the web services, portfolio services, retail advertisement, and the management of internet services (FORM 10-K, 2015).

iv. The wide market coverage

Amazon.com is an influential Company enjoying a massive market share in the online business market (FORM 10-K, 2015). Amazon has over 240,000 staff on standby consisting of both the full-time and the part-time employees'. As one of the largest online retailer, Amazon Company is a worthy competitor in the online market with a soaring public reputation in the global economy (Ward, 2016). Such influence Amazon has created in the worldwide market has enabled it to rub shoulders with worthy competitors such as Apple, Disney, and even Google (Warrington et al., 2014). The extensive market coverage and reputation of Amazon has also earned it the status of an ambitious Company that even the elites prefer to work for its dues to its great name, and the accorded level of job security (FORM 10-K, 2015). Additionally, Amazon has invested in technologies such as the cloud services to help it achieve efficiency, as well as expand its market share. Nonetheless, the HR staff has the advantage of securing new employees' within the vast tech market owing to the diversification of the online company portfolio to accommodate professionals and graduates in these fields of study (Ward, 2016). The graduates and professionals can capitalize other technologies as introduced by Amazon such as Kindle technology and Fire-mobile technology (FORM 10-K, 2015). The adoption of such technology is mentioned by Ward (2016) as to have alleviated high turnover for the enterprise.

Recommendations

For the Amazon Company to revive its human resource strategies and overcome high turnovers, it is vital that:

a) Enhance Training and Development Programs to the employee

Amazon Company should make staff training and development a culture within the enterprise in growing their competitiveness levels (FORM 10-K, 2015). For example, Amazon should train their workers to nurture them in their career path, while enhancing the internal organization quality of services. Such will result in a win-win situation for the business (Linden et al., 2013).

b) Diversify its online services

The diversification of Amazon online services will help the firm increase the capacity of the market it serves with its products, as well as the job opportunity for the graduates and professionals (Ward, 2016). Amazon should introduce other services within its portfolio, e.g., web designers and interface managers to attract qualified applicants. Such programs as recommended by Ward (2016) should help encourage creativity and innovation for Amazon, along with sustaining the best staff within its online segment.

c) Automate the HR department

Conferring from Cascio (2014), it is prudent for an organization to automate the HR department to enhance the level of interaction of staff within the business and promote organization processes. Furthermore, the automation process is suggested to be a time-saving procedure that Amazon should embrace in achieving internal efficiency (Linden et al., 2013). The automation process can also create room for establishing holistic policies regarding corporate development for Amazon (Linden et al., 2013).

d) Review up their employee salary and other benefits

The main issue attributed to high turnover at Amazon is the problem of poor remuneration and compensation for the staff (FORM 10-K, 2015). Therefore, it is critical for Amazon HR department to review its employee compensation plan and harmonize it to the prevalent market rates for employees with similar qualifications holding the same job in the industry (Cascio, 2014).

5. The overall evaluation of the Enterprise HR Competitive Position

The report by Ward (2016) reveals that Amazon.com is increasingly losing its personnel due to the heightened competition among online businesses. Such emerging trends within the Company are increasing at an alarming rate and would necessitate for an overhaul in the human resource practice for the firm. Also, Amazon.com is losing many of its resourceful/ experienced staff to Google and Apple Company who in all efforts have retained their qualified employees' (Warrington et al., 2014). Amazon Company also has demeaning compensation and remuneration package that weathers its employees’ loyalty and motivations (FORM 10-K, 2015). Nonetheless, research by Cascio (2014) recommends that the Company should aim at improving its competitiveness through implementing various strategic HR plans.

These plans as outlined in the thesis include a review of the Amazon Company staff remuneration/ incentive package (Ward, 2016). The Amazon HR department should similarly automate its HR strategy, along with diversifying its online portfolio. It is also recommended that the enterprise should enhance training and development to its employees’ to achieve efficiency for the firm and enhance on its pool of talents (Cascio, 2014; Ward, 2016).

Conclusion

Irrefutably, the sustenance of HR has been the significant challenges for many online businesses, and notably Amazon. The Company has overtime implemented strategies aimed at alleviating the situation of high staff turnover and the resilient, competitive nature of the companies within the industry. The diversification of the Company assortment of products has also boosted its competitive prospects in the online market (Ward, 2016). Therefore, it is essential that the recommendations made for Amazon be implemented to enhance the firm efficiency within the online platform, as alleviating turnover problems within the organization.

References

Cascio, W. F. (2014). Leveraging employer branding, performance management and human resource development to enhance employee retention.

FORM 10-K. (2015, September 6). UNITED STATES SECURITIES AND EXCHANGE COMMISSION. Retrieved October 18, 2017, from https://www.sec.gov/Archives/edgar/data/1018724/000119312512032846/d269317d10k.htm

Linden, G., Smith, B., & York, J. (2013). Amazon. com recommendations: Item-to-item collaborative filtering. IEEE Internet computing, 7(1), 76-80.

Ward, J. (2016, August 11). Amazon.com: Strategic Human Resource Management. Retrieved October 18, 2017, from https://www.bing.com/cr?IG=56108FA24E924CE5B4C9AA15C0A1F3B7&CID=15AAD4D98C9965B1125ADFC68D9F6461&rd=1&h=k1wR2fsAgeCkkHby0zaPM2ovZva1SKNUiSk3ZhKdPfs&v=1&r=https%3a%2f%2fwww.amazon.com%2fStrategic-Human-Resource-Management%2fs%3fie%3dUTF8%26page%3d1%26rh%3di%253Aaps%252Ck%253AStrategic%2520Human%2520Resource%2520Management&p=DevEx,5067.1

Warrington, T. B., Abgrab, N. J., & Caldwell, H. M. (2014). Building trust to develop competitive advantage in e-business relationships. Competitiveness Review: An International Business Journal, 10(2), 160-168.