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Amazon Human Resources Management: What you Need to Know
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7/13/24, 5:51 PM Amazon Human Resources Management: What you Need to Know
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Last Updated: December 14, 2023
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Whats Inside?
1. Defining Human Resources Management
2. The Position of Human Resources in Amazon Structure
3. Human Resources in Amazon
4. Recruitment and Selection
5. Performance Management
6. Amazon Human Resources Management: Critical Response
7. Conclusion
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7/13/24, 5:51 PM Amazon Human Resources Management: What you Need to Know
Amazon is a multinational technology firm specializing in e-commerce, digital streaming, cloud computing, online
advertising, and artificial intelligence. The firm has been on the Fortune 500 list since 2002. When it joined, it ranked 492nd,
and Amazon has now risen to 2nd. It is critical to analyze Amazon's human resources management to understand the
success of such a giant over the decades.
The success of Amazon is attributed to various factors. These include its creative business model, emphasis on customer
satisfaction, and capacity for growth. However, one of the most vital factors in Amazon's success is its employees – thus, the
need to interrogate human resources at Amazon.
A 2019 annual tech survey found that 89% of Amazon employees stated they were proud to work for the company.
Additionally, 84% said they would suggest Amazon as a workplace. These figures suggest that employees at Amazon are
highly satisfied with their jobs. This satisfaction is arguably one of the reasons Amazon is very successful.
Related: Discounts for Amazon Employees: Everything you Need to Know
Defining Human Resources Management
An interesting definition is that Human resource management is the art and science of getting the most out of people. I find
this definition intriguing because it isolates two main aspects of HRM: it is both a science and an art. On the one hand, the
"art" of HRM points to the ability to motivate and understand employees, whilst on the other hand, the "science" refers to the
use of data and analysis to make decisions about people. Dave Ulrich argues that HRM is a science because it is based on
applying scientific principles to the management of people.
Gary Dessler gave one of the popular definitions of HRM. He states that human resource management is the process of
acquiring, developing, and deploying an organization's human resources in a way that achieves its strategic goals. With this
background, analyzing Amazon human resource management is key to understanding the knit between human resources
and strategic success at Amazon.
Research has found that effective HRM practices positively correlate with employee satisfaction, engagement, and
productivity. A McKinsey study found that organizations with effective HRM practices are 1.3 times more likely to report
organizational outperformance. Similarly, the Society for Human Resource Management research shows that organizations
that successfully adopt the best HRM practices outperform those that do not.
Life at Amazon HR and Talent Acquisition: Meet Dan and Ewa
Related: Amazon and Walmart Pay Practices
The Position of Human Resources in Amazon Structure
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Amazon human resources management is heavily integrated with the company's corporate strategy. This follows the
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company's flexible and dynamic structure, particularly the human resources position in Amazon structures. The
organizational structure of Amazon is functional and concentrates on various business functions and components as the
foundation for establishing the interactions and reporting relationships among these various components.
Below is a snippet from the executive team organizational chart at Amazon to reflect the human resources position at
Amazon.
The organogram shows that Beth Galletti, Senior Vice President – Human Resources, reports directly to Amazon's President
and Chief Executive Officer. A new examination of the HR reporting structure found that 13% of the head of HR at various
organizations reports directly to the chief executive officer. This is the case for Amazon human resources management. The
results likely reflect the value employers place on human resources in today's dynamic working environment.
Human resources at Amazon enjoy increased visibility and importance. Research has shown that when HR reports directly to
the CEO, it makes it apparent that the CEO views HR as a strategic function and values its contribution to the company. As a
result, HR may become more visible and significant within the company, increasing the likelihood that HR will be heard at the
highest levels.
Related: Amazon Leadership Principles
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Human Resources in Amazon
Amazon human resource management is unique and very strategic. It represents a unique model of management. This is
evidenced by Amazon winning the 2018 Human Resource Management (HRM) Impact Award. The principal HRM practices of
Amazon refer to specific measures aimed at ensuring equal opportunities for all employees.
According to Amazon's Code of Business Conduct and Ethics on the company's website, Amazon human resources
management guards against discrimination in the workplace. This is not to be underestimated, as discrimination is a
growing cause of concern on a global scale. It includes anti-harassment and is complemented by safety and health
policies, which are important for human resources at Amazon.
Amazon human resource management reflects the company's leadership philosophy. They adhere to the SHRM principle,
which states that all choices about human resources should align with the organization's fundamental objectives (Sagar,
2019). Amazon's strategy refers to attaining long-term benefits with the assistance of qualified human resources.
Recruitment and Selection
Recruitment and selection is one of Amazon's main pillars of human resources management. The hiring and selection
process at Amazon is very diverse and rigorous. According to the Amazon site, Amazon has recruited from diverse colleges
and universities.
A publication by Gefen in the International Journal of Management Science stated that Amazon requires people who can
contribute ideas. As such, they disregard the employees' past careers. He further asserted that professional athletes, racing
fans, liberal artists, rock musicians, and Oxford University poetry academics are all possible Amazon employees.
Research has found that 7 in every 10 executives rate diversity as an important issue in hiring. A McKinsey study found that
businesses that are deemed to be more inclusive and diverse in hiring are 35% more likely to outperform their rivals.
Therefore human resources at Amazon continues to succeed as it leverages diversity in its recruitment and selection
practices.
A former Amazon employee shed some light on Amazon's recruitment and selection process. He highlighted that
candidates might take several interviews to fully being accepted. The process may include several phone interviews, online
interviews and face-to-face interviews. These approaches of Amazon human resources are very scientific as they avoid
perception errors by providing layers of interviews.
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Performance Management
The compensation and performance management at Amazon is very strict. Amazon has high expectations for every
employee in terms of performance management. Amazon human resources management sets specific standards for each
employee, covering everything from the daily workload to the work-related materials. It also covers the overall work plan to
the work procedures. Additionally, there are connections between remuneration and performance management. [Read
more].
The guiding principles of Amazon's leadership determine its approach to performance management. The emphasis on an
employee's unique talents and abilities fosters their capacity to handle new challenges independently rather than through
teamwork. Such a system makes it necessary to evaluate the performance of all employees regularly. In that regard, it is
said that Amazon uses a program called 'Anytime Feedback Tool.' This program allows employees to leave feedback on the
performance of others anonymously.
The feedback tool is complemented by a program called 'Connections.' Connections allows employees to respond to a daily
random question regarding their work (Kim, 2018). If a worker's performance indicators fail to correspond to the set values,
they are subject to a three-month "Performance Improvement Plan." [Read More].
Amazon Human Resources Management: Critical Response
Amazon human resources management has not been without critiques. In 2021, the New York Times published an article
titled Inside Amazon's Worst Human Resources Problem which investigated a major HR problem at Amazon. There were
serious allegations that Amazon human resources management exploited employees. The exploitation was around unpaid
leave for employees.
The New York Times conducted investigations and concluded that leave processing had gone extremely bad and was
widespread. This weighed heavily on the nature of human resources management at Amazon. The scandal tempted critics
to assert that Amazon human resources management was being mismanaged.
Amazon has come under fire for various human resources issues that have resulted in reduced performance and
productivity. Amongst these issues is poor remuneration, lack of concern for the employee work-life balance and
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insensitivity to personal workers' issues (Zhu, 2021).
The research will show that poor Amazon human resources management has harmed the company. A survey of employees
at Amazon found that only 3 out of 10 of them were satisfied during times of HR turmoil. This relatively low figure can lead to
less motivated and engaged employees.
Diversity and inclusion, which is part of Amazon human resources management policy, also open opportunities for
drawbacks for human resources at Amazon. Amazon has to deal with workforce diversity. As a result, Amazon has been
accused of numerous offences like sexual misbehaviour and discrimination (Zhu, 2021).
Many women have filed sexual harassment lawsuits against Amazon in recent years. Complaints have also been about
unfair, arbitrary, and secretive internal procedures. Amazon has also been charged with supporting racial prejudice within
the company. Some of the complaints were looked into, and those responsible were fired. However, these problems are still
not entirely resolved. [Read more].
A study by the Equal Employment Opportunity Commission (EEOC) found that Amazon had a higher rate of discrimination
complaints than other Fortune 500 companies. This discrimination could result in a loss of talent. Qualified workers are
deterred from applying for jobs at Amazon or leaving the company after being discriminated against.
Conclusion
Amazon human resources management has been the backbone of the company's success. Its close interaction with
executive management strategically positions the department to foster good and best practices. However, critiques have
come down on Amazon for violating numerous good governance in human resources.
Brandon Murambinda is an Organisational Design and Development Consultant at Industrial Psychology Consultants (Pvt)
Ltd, a management and human resources consulting firm.
Email: brandon@[Link]
Websites [Link] and [Link]
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Brandon Murambinda
Author
I am a highly organized and dedicated human resources practitioner and consultant with a passion for organizational design and development. I am also an
experienced writer with a knack for creating clear, concise, and engaging content. I have hands-on experience managing human resource functions such as
job evaluation, employee engagement, and organizational restructuring. I am also an enthusiast of human resource ethics.
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