STUDY OF

HUMAN RESOURCE CHALLENGES AT

E-COMMERCE INDUSTRY

Submitted by:(Group 2)

ASHNA MALIK
ARPIT NARULA
TRISHA JAIN
PARTH JOSHI
SEBASTIAN THOMAS
HIMANSHU BAJAJ

a
 Table of Content

Topic

Preface

Acknowledgement

Chapter - 1 Introduction 5

Chapter - 2 Literature Review 10

Chapter - 3 Methodology 15

Chapter - 4 Data Analysis and Interpretation 17

Chapter - 5 Conclusion 22

References 23

Appendix 24

b
 PREFACE
The project deals with the significance of various Human Resource challenges in the E-

commerce industry. We availed the opportunity to interact with officials and register their

perspectives and behavior towards various aspects of their organization. We planned a visit

to the organization in consent with the authorized officials to conduct our interaction

sessions for the best of our learning.

We analyzed their work culture, team management, dedication towards responsibilities,

ambiance and tradition of work space, etc. The report deals with the holistic analysis and

approach towards the significance of HR Department in E-commerce industry. This was our

opportunity to understand application of the Managing People and Perspective concepts and

how these affect the operations of organizations in the E-commerce industry.

We analyzed their recruitment, selection, orientation, training and development, and

performance appraisal processes for lower level and middle level employees.

c
 ACKNOWLEDGEMENT

We are grateful to Lal Bahadur Shastri Institute of Management, Delhi for providing us the

opportunity of working on this project. It has enabled us to gain immense knowledge on how

various concepts on how the HR department works in an organization. We would like to express

a special gratitude to our mentor, Dr. Anupriya Singh, whose contribution in stimulating

suggestions and encouragement helped us to coordinate our industry live project especially in

writing this report. The knowledge and guidance imparted by her made this project a more

organized and learning activity for us. Furthermore, we would also like to acknowledge with much

appreciation the HR Managers, Line Managers and employees of both the e-commerce

organizations’ for giving their valuable time and patiently discussing our queries about Amazon

and Big Basket working environment and enlightening us a lot more about the Human Resource

department in the organization.

4
 Chapter – 1
Introduction
“1. Introduction to the study
Ecommerce, also known as electronic commerce or internet commerce, refers to the buying and
selling of goods or services using the internet, and the transfer of money and data to execute these
transactions. Ecommerce is often used to refer to the sale of physical products online, but it can
also describe any kind of commercial transaction that is facilitated through the internet.

Whereas e-business refers to all aspects of operating an online business, ecommerce refers
specifically to the transaction of goods and services.

The history of ecommerce begins with the first ever online sale: on the August 11, 1994 a man
sold a CD by the band Sting to his friend through his website Net Market, an American retail
platform. This is the first example of a consumer purchasing a product from a business through
the World Wide Web—or “ecommerce” as we commonly know it today.

Since then, ecommerce has evolved to make products easier to discover and purchase through
online retailers and marketplaces. Independent freelancers, small businesses, and large
corporations have all benefited from ecommerce, which enables them to sell their goods and
services at a scale that was not possible with traditional offline retail.

Global retail ecommerce sales are projected to reach $27 trillion by 2020.”

Types of Ecommerce Models

“There are four main types of ecommerce models that can describe almost every transaction that
takes place between consumers and businesses.

5
1. Business to Consumer (B2C):
When a business sells a good or service to an individual consumer (e.g. You buy a pair of shoes
from an online retailer).

2. Business to Business (B2B):

When a business sells a good or service to another business (e.g. A business sells software-as-a-
service for other businesses to use)

3. Consumer to Consumer (C2C):

When a consumer sells a good or service to another consumer (e.g. You sell your old furniture
on eBay to another consumer).

4. Consumer to Business (C2B):

When a consumer sells their own products or services to a business or organization (e.g. An
influencer offers exposure to their online audience in exchange for a fee, or a photographer
licenses their photo for a business to use).

Examples of Ecommerce
E-commerce can take on a variety of forms involving different transactional relationships
between businesses and consumers, as well as different objects being exchanged as part of these
transactions.

1.Retail:
The sale of a product by a business directly to a customer without any intermediary.
2. Wholesale:
The sale of products in bulk, often to a retailer that then sells them directly to consumers.
3. Dropshipping:
The sale of a product, which is manufactured and shipped to the consumer by a third
party.
4. Crowdfunding:

6
 The collection of money from consumers in advance of a product being available in order
to raise the start-up capital necessary to bring it to market.
5. Subscription:
The automatic recurring purchase of a product or service on a regular basis until the
subscriber chooses to cancel.
6. Physical products:
Any tangible good that requires inventory to be replenished and orders to be physically
shipped to customers as sales are made.
7. Digital products:
Downloadable digital goods, templates, and courses, or media that must be purchased for
consumption or licensed for use.
8. Services:
A skill or set of skills provided in exchange for compensation. The service provider’s
time can be purchased for a fee.”

AMAZON

“Amazon.com, Inc., doing business as Amazon, is a multinational technology company

focusing in e-commerce, cloud computing, and artificial intelligence in Seattle, Washington.

Amazon is the largest e-commerce marketplace and cloud computing platform in the world as
measured by revenue and market capitalization. Amazon.com was founded by Jeff Bezos on July
5, 1994, and started as an online bookstore but later diversified to
sell video downloads/streaming, MP3 downloads/streaming, audiobook downloads/streaming, so
ftware, video games, electronics, apparel, furniture, food, toys, and jewelry. The company also
owns a publishing arm, Amazon Publishing, a film and television studio, Amazon Studios,
produces consumer electronics lines including Kindle e-readers, Fire tablets, Fire TV,
and Echo devices, and is the world's largest provider of cloud infrastructure services
(IaaS and PaaS) through its AWS subsidiary. Amazon has separate retail websites for some
countries and also offers international shipping of some of its products to certain other countries.
100 million people subscribe to Amazon Prime.”

7
“Amazon has adopted several practices that show its changed direction in terms of HR
management. Its attitude towards under-performing employees has changed. Microsoft has been
more open to embrace diversity practices. Amazon is lagging in behind in terms of being as open
and diverse. In terms of gender and ethnic diversity too Amazon is still an under-
performer. However, its step towards supporting its under-performing employees could mean
that Amazon is ready to take next steps towards managing diversity and other aspects of HR.

Amazon’s record is not so impressive in terms of HR management. It is known as a white male

dominated organization. Despite trying its best the company has not been able to control the high
turnover rate. There are other difficulties too that arise from poor HR management. The focus
has to be on keeping the employees happy and satisfied to retain them longer. The problem
with the management styles of Microsoft and Amazon has been that while they are well known
companies, they are stiff in terms of setting performance standards. This often leads to employee
disengagement. Both the organizations have followed a performance oiented strategy which once
used to be the norm at Apple.

Such cultures and cultural norms inside the organizations become a source of dissatisfaction for
employees leaving them feeling demoralized. If Amazon employees do not remain long with it,
then it is mainly because of the ruthless culture and management practices. However, it seems
pressure from external and internal sources has worked. While it cannot be called a giant step,
still Amazon may have taken the first step towards managing its employees better.

Rather than using the rank and yank system, Amazon has invested in performance
improvement plans that are going to help it better manage its under-performing employees.
Rather than throwing them out, Amazon is now helping them perform with a new training
program called Pivot. However, this could be an attempt to manage it employees and its
reputation. As an employer, Amazon has been known for maintaining an environment that favors
only the best performers.”

8
BIG BASKET
“Bigbasket (Innovative Retail Concepts Private Limited) is India’s largest online food and grocery
store. With over 18,000 products and over a 1000 brands in our catalogue you will find everything
you are looking for. Right from fresh Fruits and Vegetables, Rice and Dals, Spices and Seasonings
to Packaged products, Beverages, Personal care products, Meats – we have it all.
Choose from a wide range of options in every category, exclusively handpicked to help you find
the best quality available at the lowest prices. Select a time slot for delivery and your order will be
delivered right to your doorstep, anywhere in Bangalore, Hyderabad, Mumbai, Pune, Chennai,
Delhi, Noida, Mysore, Coimbatore, Vijayawada-Guntur, Kolkata, Ahmedabad-Gandhinagar,
Lucknow-Kanpur, Gurgaon, Vadodara, Visakhapatnam, Surat, Nagpur, Patna, Indore and
Chandigarh Tricity You can pay online using your debit / credit card or by cash / sodexo on
delivery.

Bigbasket allows you to walk away from the drudgery of grocery shopping and welcome an easy
relaxed way of browsing and shopping for groceries. Discover new products and shop for all your
food and grocery needs from the comfort of your home or office. No more getting stuck in traffic
jams, paying for parking, standing in long queues and carrying heavy bags – get everything you
need, when you need, right at your doorstep. Food shopping online is now easy as every product
on your monthly shopping list, is now available online at bigbasket.com, India’s best online
grocery store.”

9
 Chapter – 2
Literature Review
1) The comparative importance of human resource management practices
in the context of business to business (B2B) electronic commerce
Damien Power (2004)
This study examines the relationship between how people are managed, and the
effectiveness of business to business (B2B) e-commerce implementations. The human resource
management variables used to test this relationship are training, employee involvement and
participatory culture. In order to check the relationship between HRM and the effectiveness in the
e-commerce implementation certain questions needs to be answered such as:
 Can certain practices for the management of human resources be found to be common to
organizations active in the use of B2B enabling technologies?
 Are organizations reporting that use of B2B technologies have led to specific
improvements in performance also more likely to be involved in particular human
resource management practices?
 To what degree can specific HRM practices explain variance in levels of performance
attributable to the use of B2B technologies?

The research methodology consists of survey using a questionnaire and chi-square test and
ANOVA tests were used to compare the response. The research was constructed on the following
elements and variables
 Training
(1) training participation: all relevant staff have participated in information
sessions/training programs; and
(2) training: percentage of budget: approximate percentage of total expenditure allocated
to training/employee development.
 Employee involvement
(1) extent of involvement during planning and implementation of: senior management;
(2) extent of involvement during planning and implementation of: middle management;
(3) extent of involvement during planning and implementation of: front line management;
(4) extent of involvement during planning and implementation of: general staff.
 Participative culture
(1) when we develop our plans, policies and objectives we incorporate customer
requirements, supplier capabilities and the needs of other stakeholders;
(2) senior managers actively encourage change and implement a culture of trust,
involvement and commitment in moving toward implementation;
(3) champion(s) of change are effectively used to drive change in this organization;
at this organization we pro-actively pursue continuous improvement rather
than reacting to crisis.
(4) ideas from production operators are actively used in assisting management; and
(5) Our company has effective “top-down” and “bottom-up” communication processes.

10
  Contribution to business outcomes:
(1) improved customer satisfaction;
(2) reduced finished goods inventory;
(3) reduced WIP;
(4) reduced raw materials inventory;
(5) improved product traceability;
(6) improved stock accuracy;
(7) reduced time required for annual stock takes;
(8) increased productivity;
(9) improved service quality;
(10) improved product quality;
(11) increased flexibility;
(12) increased sales;
(13) increased net profit;
(14) reduced cycle times;
(15) improved cash flow;
(16) reduction in claims; and
(17) Reduced cost.

Findings and conclusion

It was found that there is a clear link established between effective management of human
resources and effective implementation of B2B e-commerce enabling technologies. In particular,
there is evidence to suggest that the development of a participative culture coupled with the
involvement of employees, will be more effective than solely investing in training programs. The
focus of strategies for implementation and use of the technologies, as well as plans for investment,
need to (at a minimum) take into account the importance of the human interactions. there is
substantial evidence suggesting that these factors may have a fundamentally determining influence
on successful implementation. If such interactions are critical, the specific HRM policies and
practices relevant to effective management of these factors will also become critical.

2) A Study of HR Practices Adopted by E-Commerce Companies in India

The e Commerce sector has seen unprecedented growth in 2014. The growth was driven by rapid
technology adoption led by the increasing use of devices such as smartphones and tablets, and
access to the internet through broadband, 3G, etc, which led to an increased online consumer base.
Furthermore, favoured demographics and a growing internet user base helped aid this growth. In
terms of highlights, the growth shown by homegrown players such as Flipkart and Snapdeal and
the huge investor interest around these companies displayed the immense potential of the market.
With the entry of e Commerce behemoths such as Amazon and Alibaba, the competition is
expected to further intensify. Both these international players come with deep pockets and the

11
patience to drive the Indian e Commerce market. Also, their strong domain knowledge and best
practices from their international experience give them an additional edge.

According to this research paper, The following are the HR practices that can be adopted especially
in the E-commerce industry in India to work in a more efficient and effective manner.

 to improve effectiveness and efficiency in terms of service delivery, cost reduction and
value-added services, HR departments came under pressure to harness technology that
was becoming cheaper and more powerful.
 computerized human resource information system consists of a fully integrated,
organization wide network of HR-related data, information, services, databases, tools and
transactions. Technology has only recently developed in a way that enables e-HRM to
make its mark, especially the introduction of corporate intranets and web-enabled HRIS.
The nature of the development path, however, varies considerably from organization to
organization.
 EHRM tools such as intranet, extranet, HR portals; integrated HR suite software is rarely
used, however according to expert's judgment if they are used, they would have a positive
effect on HRM output
 the diffusion patterns of eight information technologies that are transforming HR service-
delivery in North America and Europe: HR functional applications, integrated HR suites,
IVR systems, HR intranets, employee and manager self-service applications, HR
extranets, and HR portals. Companies in the 21st century can be broadly said to have
adopted at least one of the above mentioned eHRM technologies.
 to make strategic changes within the human resource function, HR professionals must
still deliver good HR services to their stakeholders who include employees and managers.
One of the most important fundamental principles in managing human resources is
fostering the employment relationship so that employees may feel an attachment to their
work and contribute willingly to the success of the organization.

Hence it was concluded in the study, (1) Employees prefer e commerce organization than
traditional organizations. (2) HR policies are more flexible in e commerce companies. (3)
Knowledge of latest software technologies play an important role while recruitment in e-commerce
organizations.

12
 3) Recruiting the ‘right’ talent has emerged as one of the top challenges which HR has to
face in their daily operations. Fierce competition, limited pool of qualified candidates and
at times inability to offer a competitive salary are some of the top recruitment constraints.
Apart from this, inadequate branding and risk associated make these enterprises less
attractive vis-a-vis more established, big organizations. However, there has been a small
perception shift- highly qualified and experienced people are now willingly taking up
senior positions in such enterprises- their profiles are exciting and offering them diverse
roles and responsibilities with a good benefits package. Despite this positive shift, HR
managers still struggle to create a strong layer of middle managers, especially in the
urban set up where competition is fierce.
 BIG GROUPS

Applicants are attracted towards reputed names and want to work with BIG GROUPS so it
becomes a challenge for startups and other mid level companies. Applicants feel that in small
companies there is less job security so they go for BIG GROUPS. Reputed names are a big
attraction for candidates.

 SALARY EXPECTATIONS

Applicants have very high salary expectations which becomes a challenge for the HRs. Applicants
wants a higher package which is sometimes not possible for the company to provide. It becomes
very difficult for the HRs to hire applicants which are in their financial range.

 Other Things To Consider:

 Job value: Each job is assigned a pay grade, based on the job description and
the analysis of industry pay rates for similar jobs. Additional consideration
may be given for jobs with hard to find skills and/or the job’s overall value to
achieving the goals of the department.
 Individual value: The value that the individual applicant brings to the job
based on their relevant skills and experience. Less skilled and experienced

13
 applicants should be paid lower in the range, while more skilled and
experienced applicants would be paid higher in the range, though not always
above the mid-point or at the max.
 Internal equity: A review of salaries of current employees in similar positions
will be completed to ensure internal equity.

 Training and Development

To succeed in current scenario, organizations need to have a pool of skilled labour. Big
organizations are making concerted efforts to assess and upskill their talent by roping in expert
external vendors to assess and deliver various training programs. However, relying on external
vendors is not always feasible mainly owing to budget constraints. Therefore, they are mostly
conducting on-the-job or in-house training programs which might or might not be that effective.
So despite realizing the need to roll-out specific skill based programs, HR at times, feels
constrained to take that up.

 SKILLS

It is difficult for the HRs to find candidates with appropriate skill sets. It is difficult to find
candidates with certain attributes such as –

 Self Motivation
 Leadership
 Positive Attitude
 Ownership qualities

The main issue that HRs face today is the attitude problem as candidates have a different attitude
that is required in an organization.

14
 Chapter – 3
Methodology

3.1 Objective
 Identifying the broader HR practices and challenges in the E-commerce Industry.
 Employee perception regarding recruitment, training and development of the organization.
3.2 Methods of Research

1. Exploratory Research: Additional information was gained before developing an approach by

having a general interaction with managers at the organization and some research papers were

reviewed some of which have already been mentioned and finally an interview schedule for the

survey was prepared to carry on the study.

2. Descriptive Research: It was done by carrying out various depth-interviews with the HR

Managers and with the Line Managers. Also we also made a questionnaire and around 15

employees of each company filled out the questionnaire.

3.3 Method of Data Collection

➢ Secondary Data: The main sources for the collection of secondary data for the study were

the company website, research papers. Frequently asked questions on the website were also

considered to get some idea of the workings at the organization

➢ Primary Data:

i) Exploratory: Through analysing

• Interviews of people working in Big basket and Amazon.

• Literature Review of various Research papers

ii) Descriptive: Through interview schedule technique

15
3.4 Literature review and Data analysis:
Finally, we did analysis of our secondary data which were the research papers and found out
some key variables that affect organization culture and make an interview schedule. analysed
our primary data collected from the interview and tried to relate them with behaviour of
employees in the organization drawing out conclusions and suggestions for the organization.

16
 Chapter – 4
Data Analysis and Interpretation

AMAZON:
 RECRUITMENT – with Amazon, the hiring approach is slow, methodical and intense.
The background work done to acquire the right and the best fit is quite complicated and
intense. While carrying out the recruitment and selection drive the focus is not only on the
technical terms, but also on other factors such as will the person be able to fit in the culture
along with the job role? will he be Promotable?, can they handle the stress and work load
that many amazon job profile comes with?
 The main recruitment process involves the job technicalities. The job description followed
by the selection process emphasizes on the basic knowledge of statistics, the machine
learning. The tasks are mostly based on descriptive analysis. The computer skills and
software language such as R, SAS, SPSS, Excel and Querying language such as Hive, Pig,
SQL play an integral role. So the main HR practice and recruitment efficiency for Amazon
depends on its efficiency in defining its job descriptions with clarity and accuracy.
 SELECTION – the selection-based JR practices involve a thorough in depth testing of the
candidate’s knowledge to find the best fit.
 The selection process involves 1 online coding round via hackerearth or hackerrank, 1
telephonic round. These two are optional and are held on for some specific core technical
profiles. Also 4 on-site technical interviews covering the past projects, experiences etc are
conducted.
 The hiring is totally dependable on the requirements with this year amazon expanding in
india will be indulging in a lot of fresher and lateral hiring
 TRAINING - Orientation program, 2 day boot camp session, courses about amazon
systems, quizzes are highly indulged in.
 Employees are upgraded with advanced technological training.
17
 Amazon organizes 2 day Bootcamp Sessions for the SDE position of any level.
 In Bootcamp, well acquainted SDE folks walk the new joiners through the Amazon internal
tools and Services available.
 In terms of grasping the information in 2 Days is a big challenge. Therefore, SDEs
generally learn the working of tools while using those tools by themselves.
 For career advancement and growth opportunities - Amazon gives you advantages of
both a big company and a startup. You are involved in the working of your project in every
stage from design, code and test. Your inputs to a project are properly heard and reflected
into the project.
 For PFW and HR policies dealing with this - The minimum time for an employee to
complete in Amazon to be eligible for an IJP(internal job posting) is 6 months. Job rotation
and job flexibility is also emphasized on in the HR practice.

The issues faced by the HR department of Amazon is as follows: Performance evaluations

and reviews (including which metrics are chosen and how they are measured, especially
soft leadership skills which are easily falsified today)
 Promotions (especially avoiding favoritism based on falsified data)
 Performance improvement plans (especially PIPs based on falsified data)
 Transfers (including avoiding abusers blocking transfers)

While it cannot be called a giant step, still Amazon may have taken the first step towards
managing its employees better.

Rather than using the rank and yank system, Amazon has invested in performance
improvement plans that are going to help it better manage its under-performing employees.
Rather than throwing them out, Amazon is now helping them perform with a new training
program called Pivot. However, this could be an attempt to manage it employees and its
reputation. As an employer, Amazon has been known for maintaining an environment that
favours only the best performers.

Pivot is actually a retraining program that is aimed to provide struggling employees with a
lifeline before they decide to quit. The program assigns such employees to inside
counselling and in-house career counsellors who assist them manage their jobs and career
better. This can be considered a wise step by Amazon for pressure is sometimes higher than
the customers can imagine inside the technological companies. Their task is not
straightforward and so the employees need support to manage the rest affairs. Apart from it,

18
 Amazon has also focused on improving HR management by using cloud-based services to
better its HR management capabilities.

BIG BASKET:
 RECRUITMENT – being an operations and marketing based organization, it has an
approach that targets millennials and tech savvy audience and hence uses social
media and internet challenges very actively.
 SELECTION - Campus recruitment drive, hiring for both technical and management
professionals.
 TRAINING – for this off job, on job, apprenticeship, internships, experiential,
vestibule etc.
 To keep up with the dynamics od this industry the HR practice of Big Basket has a
full on hands on and aggressive approach.
 It gives the employees the flexibility and freedom to design and adapt the job roles
and create the roles according to themselves.
 Big Basket prides itself in solving customer problems in the most efficient and
elegant ways. Everything we do is guided by our core culture and values. Big basket
is mix of fresh young blood and experienced seasoned players. This is what makes
the combination so solid and the culture so balanced. Its a great place to work.
 CHALLENGES - Since Big Basket is a new player in the market, we are aligning
our HR policies with the strategies of business.
 Currently the HR policies are more focussed to expand their business in the market,
challenges related to HR or employees are not considered much.

19
 Employee Perception

ANALYSIS AND INTERPRETATION OF EMPLOYEES

1994 seems to be the year in which the first ever online purchase was pioneered. Ever since then
the e-commerce has continued to bloom. The prime example of this boom is of Amazon and the
recent one being Big Basket, the subject of our study. On the basis of our interaction with the
employees of both the organization we could gather the following insights in regard to the HR
practices and challenges of E-commerce industry.
AMAZON:
Amazon’s business model is perhaps about scale, automation and efficiency. The HR or people
strategy are geared towards attracting and retaining the employees that will help to accelerate and
improve these key performance and competitive advantage factors. The following insights could
be drawn regarding the present Hr polices, practices and challenges faced.
 The Recruitment part of Amazon is strong. Their Job descriptions are very specific
and clear. It aligns with the job role and task.
 Also, Amazon has been quite efficient in terms of their reach to invite applications.
 Though the job description is quite valid and reliable during recruitment and selection,
it often fails to follow the pattern of change in the industry.
 No work life balance.
 Too muck work pressure and stress.
 Competitive environment – coming up of too many companies leading to increased
work load and pressures for the employees.
 The salary and compensation of the employees is not up to the mark and aligning
with the ever-increasing work load, leaving the employees dissatisfied in the majority
of cases.
 The amazon sales are also an indicator of the increased level of pressure as the
employees stay the whole night at the office working, as revealed by an employee.
 The approach of training is very slow, in contrast to the dynamic and ever evolving
nature of the industry.
 The training is also outdated and does not cater to a satisfactory level for the
employees
 Amazon indulges in both promotion from within and hiring from outside actively and
maintains a medium level of strictness and indulgences in its PFW.
 Amazon being in the market for a long time and because of its work load pressure at
times seems to fail in satisfying and resolving the Hr related issues of the employees.
 Amazon has adopted several practices that show its changed direction in terms of HR
management. Its attitude towards under-performing employees has changed.

20
  Amazon is lagging in behind in terms of being as open and diverse. In terms of gender
and ethnic diversity too Amazon is still an under-performer.
 The challenges for Hr management include the high turnover rate and the desperate
need for retention of the employees. The focus has to be on keeping the employees
happy and satisfied to retain them longer.
 The problem with the management styles of Amazon has been that while it is a well-
known company, it is stiff in terms of setting performance standards. This often leads
to employee disengagement. Hence this is also a challenge for the Hr department to
engage, motive and retain their employees.

BIG BASKET:
Big Basket.com is an online grocery start up organisation. Majority of these employees are
designated as warehouse employees or delivery boys who comes from outside the city, generally
from northern and eastern part of India or people from near-by villages. These employees have a
limited expectation from their job such a safe and hygienic workplace, clean drinking water and
timely salary. The average salary for these employees is Rs.11000 which makes it difficult for
them to survive and save money for their family. Hence, they switch over to rivals even for a hike
of Rs.500 to Rs.1000. Hence the attrition among this level of employees is the highest.
In order to manage the retention of these blue-collar employees, Big Basket has come up with a
free housing and accommodation facility. In that case, these employees would be saving a big
amount from their salary which they can send to their family. These housing facilities would be
near to their workplace which reduces their daily transpiration cost too leading to further avenue
for savings.
 Recruitment – vague in terms of job description as the job role do not align with the job
description in a very clear, accurate manner.
 The JD is not very centric to one job role. There is a play of job rotation in the
organization
 The selection process is medium level relevant and accurate. The focus right now is on
hiring people from outside rather than promotions from within.
 This is due to the specific technical requirements of software languages like R and
Python for marketing and operations profile of the organization.
 Big basket being a comparatively new and smaller company gives more exposure.
 The salary and compensation seemed to be quite satisfactory
 The training of Big Basket is though actively catered to by the Hr practice of he
organization, but it is very job/ task specific and not for enhancing the soft skills or
growth opportunities of the employees.
Big basket is still going on in the phase of the new learning experience

21
 Chapter – 5

Conclusions & Suggestions

From the analysis of the responses of the HR managers, Line managers and the employees of the
two organizations, and information from company websites, we were able to draw certain
conclusions. Big Basket is a much newer organization as compared to Amazon, it lays a lot of
emphasis on its employees in the sense that they provide good monetary incentives, effective and
relevant training which is refreshed from time to time which is not the case in Amazon, where
although there is training provided to the employees but it not found very effective according to
the employees. In Amazon, the job profiles offered to the employees are much more precise as
compared to Big Basket, where profiles are found vague by the employees. According to the
employees, the HR functions are not so efficient when it comes to handling issues related to
employees which is not the case in Amazon.

Some of the broader HR challenges in the e-commerce industry that could be identified from the
analysis are:
 Project focus: One of them problem in the e-commerce industry is that incentives for the
managers are provided on the basis of the projects, due to which, the focus of the
managers is more towards the projects rather than other managerial functions which are
very important for the overall betterment of the organization.
 Technological changes: Technology plays an important part in the e-commerce industry
because of its high involvement in all the functions of the organizations. This makes it
important for the organizations to hire such people who are well aware of the changes in
the technological environment and are able to cope up with it.
 Problems in designing the training programs: Because of the dynamic nature of the e-
commerce industry, one training program doesn’t fit all the functions and it is also
necessary to refresh and redesign the training program at regular intervals which again
has to be according to the changing environment, this poses lots of problems for the HR
department of these organizations.

Apart from the above, HR department also has the responsibility to deal with the attrition
rates which can be quite high especially in some functions which require high technical
skills.

22
 References

1. https://spiritofhr.wordpress.com/tag/bigbasket-com/
2. https://www.google.com/amp/s/www.peoplematters.in/amp-talent-management-alibabas-
investment-in-bigbasket-talent-implications-17380
3. https://www.cheshnotes.com/2017/02/hr-management-at-amazon-need-for-employee-
satisfaction/
4. https://hbswk.hbs.edu/item/is-something-wrong-with-amazon-s-low-retention-hr-strategy
5. https://www.retaildive.com/news/amazon-revamps-hr-strategies-to-aid-underperforming-
employees/434526/
6. https://www.ignite.digital/ecommerce-recruitment-drastically-changed/
7. http://shodh.inflibnet.ac.in:8080/jspui/bitstream/123456789/4082/1/rachna%20gaur%20s
ynopsis.pdf
8. https://www.ignite.digital/ecommerce-recruitment-drastically-changed/
9. https://spiritofhr.wordpress.com/tag/bigbasket-com/
10. https://www.cheshnotes.com/2017/02/hr-management-at-amazon-need-for-employee-
satisfaction/
11. https://hbswk.hbs.edu/item/is-something-wrong-with-amazon-s-low-retention-hr-strategy
12. https://www.retaildive.com/news/amazon-revamps-hr-strategies-to-aid-underperforming-
employees/434526/

23
 Appendix
Interview schedule for HR Manager

Interview of HR Manager of Amazon

1) What is your hiring approach? Where do you advertise your openings for
desired applicants?
Slow, methodical, sometimes intense, more complicated than you might think and for reasons most
people don’t get. We work very hard to ensure a really good fit and strive to find perfect candidates
appropriate for the position. We are all human and certainly make mistakes but we go to great lengths
to ask things like: will this person not only do well but will they be promotable? Does this person fit
in with culture? Will they be happy working with the team? Are they up to the demands and
requirements to be highly independent? Can they handle the stress that many Amazon jobs come with?

2) What is the process of recruitment you follow?

 1 online coding round via hackerrank or hackerearth

 1 telephonic round
 4 on site technical interviews covering past projects, experiences, algorithms,
problem solving, high level & low level design.
 HR
The first 2 are optional and recruiters might skip sometimes.

3) Do you guys have a competency framework available in your organisation

for every role? What are some important competencies that you look for in
prospective candidates?

Technical Skills:

 A basic knowledge of statistics to a rigorous understanding of Machine Learning. Most

consumers of analysis will not look at more than descriptive analysis (means, medians,
significance).
 Computer skills that are useful are a Querying Language (SQL,Hive,Pig), a scripting
Language (Python,Matlab), a Statistical Language (R, SAS, SPSS), and a Spreadsheet
(Excel).

24
 4) On an average how many people do you hire externally every year? And
how many internally?
It entirely depends on the requirement. As Amazon is expanding in India, this year, we would hire a
lot. (Probably around 300 SDE's). I unfortunately do not have numbers to support this and this is just
an approximation.
SDE-1's are typically between 0-4 years of work experience.
I feel they might hire around 100-150 freshers and 250-300 laterals.

5) What are the various employee career advancement initiatives taken by your
organisation?
Amazon gives you advantages of both a big company and a startup. You are involved in the working
of your project in every stage from design , code and test. Your inputs to a project are properly heard
and reflected into the project.

6) To adapt to the dynamic environment and changing technology, what

initiatives do you take to train and develop the employees?

Amazon organises 2 day Bootcamp Sessions for the SDE position of any level.

In Bootcamp, well acquainted SDE folks walk the new joiners through the Amazon internal tools and
Services available.

In terms of grasping the information in 2 Days is a big challenge. Therefore, SDEs generally learn the
working of tools while using those tools by themselves.

7) What kind of training do you provide to individuals? (vestibule,

apprenticeship, on the job, off the job, experiential etc)
The first day is all about the orientation programme, Bootcamp session and an informal meeting with
the manager, mentor and teammates. From second day, some courses about the Amazon Systems (how
things work there, what guidelines are followed etc.) are given. These courses are very interesting and
interactive. Every course is followed by some set of quizzes at the end. We have sprints to discuss and
plan work in every 3–4 weeks.

8) How often do you reskill or upskill the employees and on what basis do you
select the employees ?
This is done on a regular basis, employees have to upgrade themselves with the latest
technologies. It is mandatory for all employees.
9) How is the career path of an individual in your organisation planned and
what is the process for the same?
25
The minimum time for you to complete in Amazon to be eligible for an IJP(internal job posting) is 6
months! If there's a requirement, we also release postings for the same position in a different
process(you also can move from a national to an international process or vice versa). One best thing,
I'd say is you can move to any role across the company, no matter if you're a CSA, just two things:
Wait for the right time(job role) and bang that post(clear the rounds). It doesn't take much time for you
to grow, coz the managers are pretty much supportive! They try their best to see you in the role that
YOU want to work for some day and also show you accurate career paths!

10) Do you think that the HR policies and practices of your organisation
are aligned with the strategies of the business? If yes, then is it stagnant or
how often do you change them?
The company has grown a lot in the past few years, and that means a lot of processes and organisational
structure is not in place to handle the growth. There are a lot of new HR processes are evolving to
handle the larger base. Because of the “many hats”, you’ll encounter people that aren’t qualified to
wear those hats. This is both a pain point and an opportunity.

11) Are there any issues which you are facing currently in the
organisation related to HR or employees?

 Performance evaluations and reviews (including which metrics are chosen and how they are
measured, especially soft leadership skills which are easily falsified today)
 Promotions (especially avoiding favoritism based on falsified data)
 Performance improvement plans (especially PIPs based on falsified data)
 Transfers (including avoiding abusers blocking transfers)

Interview of HR Manager of Big Basket

1.What is your hiring approach? Where do you advertise your openings for desired applicants?
We are looking for people who share our passion for building world class product. If you are
excited about the prospect of changing the way India shops for groceries and being a pioneer --
then this a great home for you.
2.What is the process of recruitment you follow?
We do both on campus and off campus hirings. We generally hire for technical as well as
management professionals.

3.Do you guys have a competency framework available in your organisation for every role?
What are some important competencies that you look for in prospective candidates?

26
Bigbasket thrives on out of the box thinking and relentless pursuit of excellence. Not to mention
the thrill of building products that millions use on a daily basis and using cutting edge technology
to make the products customers love.
4.On an average how many people do you hire externally every year? And how many
internally?
It totally depends upon requirements. There are not any fixed numbers, it varies as we are
expanding day by day.
5.What are the various employee career advancement initiatives taken by your organisation?
The best part about being in bigbasket to employees is that they could create a role for themselves.
They get the opportunity to do things they have never done, perform tasks they have never
performed. And the bi-product of each of these tasks is excellent learning.

6.To adapt to the dynamic environment and changing technology, what initiatives do you take
to train and develop the employees?
We provide various online training sessions as well as numerous seminars are also conducted
frequently to keep our employees equipped with latest technologies.
8.How often do you reskill or upskill the employees and on what basis do you select the
employees ?
9.How is the career path of an individual in your organisation planned and what is the process
for the same?
We pride ourselves in solving customer problems in the most efficient and elegant ways.
Everything we do is guided by our core culture and values. Bigbasket is mix of fresh young blood
and experienced seasoned players. This is what makes the combination so solid and the culture so
balanced. Its a great place to work.
10.Do you think that the HR policies and practices of your organisation are aligned with
the strategies of the business? If yes, then is it stagnant or how often do you change them?
Since Big Basket is a new player in the market, we are aligning our HR policies with the strategies
of business.
11.Are there any issues which you are facing currently in the organisation related to HR or
employees?
Currently we are more focussed to expand our business in the market, challenges related to HR or
employees are not considered much.

Interview schedule for Line Managers

27
 (BIG BASKET)
1. How do you manage your team? How do you assign tasks to the employees?

I manage my team by indulging with them towards the project and taking regular feedbacks and
updates on what they are doing and if any problems occur then how to handle them. Tasks are
assigned according to their skills and knowledge but willingness also plays a huge role in this
decision. Every team member should be happy with the work assigned because then only they give
their 100% to the organization.

2. How do you think the induction and orientation is helpful?

Induction is very crucial for any new employee because induction sets a base for them and they
get to know about the culture, structure and values of the company. They can get themselves
acquainted with the code of conduct of the organization.

3. How do you decide when to train the employees and how do you design the
training? Employee specific or role specific?

Well mostly I believe in on the job training methods, an employee can only learn in practical form,
that is what I believe. Employees should be trained regularly because they can lose touch with the
modules, but in the organization it happens on a quarterly or on 6 months basis. The modules are
designed according to the job profile of the employees but it also depends on the maturity level
and time in the organization.

4. How do you make sure that employees are motivated?

First of all, employees will not need motivation if the work is what they like. Also the
compensation plan should have an aspect of performance based pay. Money has always been the
key motivator for an employee. Second is always recognition in the organization, so I believe in
appreciating my employees in front of my seniors for their good work. Thus the employee knows
that I will fight for him and he also gains recognition in the eyes of the seniors.

5. How do you manage the problems at entry level jobs?

28
At entry level jobs attrition is too much because the employee doesn’t feel like he belongs in the
organization. A new employee comes with some dreams to an organization and they feel betrayed
when those are not fulfilled. The employee should feel valued in the organization.

6. How do you measure the performance of the employees?

There are many systems in place for that in the organization, ratings are given to employees at the
end of every year on the basis of past year’s work and goals they achieved. Also if an employee is
going above and beyond to what he needs to do then he is also given the performance incentives.

(2)

1. I manage my team by making sure that they are involved in their work so that they are
always on their toes. Tasks are generally assigned according to the potential of the team
members and according to the area that they are supposed to handle regarding a project.
2. Induction and orientation are helpful in the way that it helps the employee to get to know
about the organization culture, ways of working, the structure, etc. It also ensures that the
newcomer is comfortable getting into a new work place.
3. Employees are trained on a continuous basis. These trainings are refreshed every 6
months or a year depending on the attrition rate of that particular function. Trainings are
provided for the particular product or services offered because if this is not done then
employees might not have complete idea regarding them. The training for new employees
is generally role specific, however, it is sometimes tweaked for the employee in terms of
duration and things like that.
4. There are incentive systems on quarterly, semi annually and annual basis for motivating
the employees. Apart from that there is a system of recognition on the spot, where a
certificate is provided for doing the work in an excellent way, this is signed by the head
of the function. And, the employees are continuously appreciating the employees in front
of the bosses and ensuring that the employee knows about it.
5. Generally at entry level jobs, employees don’t feel engaged in the organization, so it is
made sure that the employee knows that his worked is being looked upon. And to make
them comfortable they are assigned buddies who help them with their problems and help
them do their work on a daily basis.

29
 6. Employee are given certain KPIs and there are semi annual and annual reviews with the
supervisor and further their supervisors, the review is done keeping in mind the KPIs. So
on the basis of these reviews, feedback is given regarding the work to the employee.

(AMAZON)

How do u manage your team? How do you assign tasks to the employees?

I keep my team members continuously involved in the project that is being worked upon, also I
am open to any feedback from all my team members so that if there’s more ideas that can come
in. Tasks are mostly assigned according to the skill and knowledge of a particular employee but
the relationship between the team members also plays a role In the same.

How do u think the induction and orientation is helpful?

Inductions and orientation and very helpful for the employees because it provides them with the
overall basic information about how the work is done in the company, the resources available and
whom to look to in case of a problem etc. It makes them more comfortable and helps them in the
initial phase of the job.

How do you decide when to train the employees and how do you design the training? Employee
specific or role specific?

Training is conducted when an employee is hired, these programs are generally designed in a way
that help in coping with the challenges that an employee can possible face with the kind of work
that he is required to do. Generally, training is according to the role of the employee, however, if
we feel that there is a need to provide some additional training based on the specific employee,
then that is also conducted.

How do u make sure that employees are motivated?

There are certain components in the compensation for motivating the employees such as bonus,
increments (quarterly, annual). Apart from this, it is made sure that employees doing good work
receive recognition in the organization.

30
How do u manage the problems at entry level jobs?

How do u measure the performance of the employees?

There are quarterly and annual business reviews where each employee is held accountable for
various parameters. There’s also organizational level reviews and the top and bottom performers
are presented to the board of managers.

(2)

1. How do you manage your team? How do you assign tasks to the employees?

Managing team is one the most important task of a manager, I

2. How do you think the induction and orientation is helpful?

3. How do you decide when to train the employees and how do you design the training?
Employee specific or role specific?
4. How do you make sure that employees are motivated?
5. How do you manage the problems at entry level jobs?
6. How do you measure the performance of the employees?

Interview schedule for Employees

Questionnaire for Employees
Name of the Organization:
Age: Less than 22
22-29
30-39
More than 39 years
How long have you been working there : Less than 12 months

31
 1-2 years
2-5 years
More than 5 years
1. Compensation/ salaries given in the organization in line with the e-commerce industry?
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied

2. How are the HR practices and challenges in other industries you have worked for
different from that of the e-commerce industry?
High
Medium
Low

3. Do you think the training given is appropriate and adequate for coping up with the dynamic
nature of the e-commerce industry?
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied

4. Did the job description align with your job task (in the past as well in the present)?
Yes
Partially Yes
No

5. Do you think the selection process was relevant to the industry requirements and job profile you
applied for?
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied

6. Where did you get to know about the job position vacancy?
Relatives/ Family/ Friends
Employee – Reference
Internet/ Social Media
Newspaper advertisement

32
 Others

7. If through newspaper article, website, reference – how precise and attractive was the ad?
High
Medium
Low

8.Does company prefer PFW(Promotion from within) or hiring from outside?

PFW
Hiring from Outside

9 .If PFW - how much according to you does the company stand for PFW as its policy
states? (growth and promotion opportunities)
High
Medium
Low

10. Has the HR department been able to fully address the issues that you have faced in the
organization?
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied

Any Other comments:

33