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Table of Contents
1.0 Introduction...........................................................................................................................2

2.0 Literature Review.................................................................................................................2

3.0 Analysis................................................................................................................................4

3.1 “Bezos: a Transactional Leader”............................................................................................4

3.2 “Bezos: a Transformational Leader”.....................................................................................5

3.3 Development of Amazon.com.................................................................................................6

3.4 Relationship between Amazon.com development and Jeff Bezos’ Leadership Style...........7

4.0 Conclusion and recommendations........................................................................................8

References......................................................................................................................................10
 1.0 Introduction

To date, Amazon may be regarded as the most customer-centric corporation in the world, and

Bezos is credited with changing the way customers across the world perceive e-commerce

purchasing. Bezos is regarded as a brilliant business leader in terms of value generation and

profitability, and Amazon has seen tremendous development under his direction. Newspapers

like the Times, Fortune, and Wall Street Journal have emphasized Jeff Bezos' leadership qualities

as a visionary and charismatic one (Cheung, Burns, Sinclair, & Sliter, 2017). Jeff Bezos'

leadership style will be examined in depth in this research. The next section will examine Jeff

Bezos' leadership style and how it compares to other leadership theories and concepts. According

to several media reports, Jeff Bezos has implemented an organizational culture within the firm,

which will be discussed next. This study will examine the relationship between Amazon's culture

and Jeff Bezos' leadership style and well-being to determine what implications can be derived

from the research.

2.0 Literature Review

Nowadays, leadership is a hot issue explored from several viewpoints and, at the same time,

symbolizes a highly prestigious spot. There is a wealth of literature that speculates on the traits

required to reach such a prestigious position. While it's true that circumstances aren't always

provided, conditions may be produced and controlled by a person/group/entity, leadership can

accelerate progress. To fully understand this idea, we must first define it (leadership) and then

put it into perspective by looking at Jeff Bezos and Amazon as a case study.

Strategic change may be described as the "capacity to foresee and envisage" and "maintain and

empower others to create this as necessary" (Oviedo & Bursztyn, 2016). To understand what

makes a "good leader," one must first understand that there are several leadership styles and
methods. If you look in the academic literature, you'll find that James M. Burns, a leader studies

specialist, separated leadership into two opposed types in 1978 (Greve & Song, 2017). These are

transactional leadership and transformational leadership. In the first instance, leaders are looking

for a cooperative connection based on an exchange from their followers, and this relationship is

being tracked as it develops. However, there is a transformational leadership style in which

people are motivated to go beyond their interests to reach a higher goal (Blanco, Sena, Mesquita,

Filho, & Secretan, 2013).

Nowadays, businesses choose the transformational leadership style to foster a greater degree of

growth, and this can even result in a competitive advantage. To make this work, a softer

leadership style and the associated abilities must be utilized. The reason for this is that, as the

definition provided above shows, leadership involves the capacity to empower those around you.

Character, charisma, conscience, conviction, bravery, communication, compassion, dedication,

consistency, thoughtfulness, and contribution are all part of this leadership strategy (Tran, 2016).

Leaders don't need to have all of these qualities, but it's a good start if you have some of them.

This may be compared to Sam Walton, the man who founded Wal-Mart.

It is said that transformational leaders are those who bring about "ethical [and] attitudinal [as

well as] process alterations to followers" (Frederico, Zuanon, & De Marco Jr, 2016) and

therefore affect the creativity and performance of the employee; Jeff Bezos is attempting to make

an art form out of applying the concepts.

Some businesses have implemented the organizational agility approach to deal with the

requirement for continual change. Described as a "combination of flexibility, nimbleness, and

speed" (Chen, 2017). This is due to research showing that using a more methodical approach

might result in a greater success rate. Research from the Massachusetts Institute of Technology

(MIT) shows that agile businesses grow sales 37% quicker and earn 30% more profit than non-

agile ones (Winemiller, et al., 2016).

3.0 Analysis

3.1 “Bezos: a Transactional Leader”

Noronha, & Pinto, 2017)characterizes Bezos as a micromanager who has high standards but is

unconcerned about what other people think. Transactional leadership is a word that describes this

kind of management. Transactional leaders, according to (Mergen & Ozbilgin, 2021), exert
influence because their subordinates have a vested interest in doing what their superiors desire.

Transactional leaders are also known to be highly effective in attaining operational objectives

and results, as well as in developing firms that survive in the current era of global competition.

3.2 “Bezos: a Transformational Leader”

Along with his transactional leadership skills, Bezos is also a change agent eager to

innovate. Transformational leadership, according to (Camgoz & Ekmekci), generates remarkable

outcomes while also inspiring follower innovation. Transformational leaders are recognized for

presenting a compelling future vision that captures the attention and loyalty of their followers.

Transformational leaders motivate their teams to go above and beyond by connecting the

company's long-term aim with the values of its employees. Bezos has unquestionably excelled in

this area. This can be observed from the success of Amazon.com, which is probably due to his

ability to imagine, inspire and create even when rivals and investors did not believe his

innovation could produce significant financial returns.

Amazon's CEO demonstrates that he adheres to the seven transformative leadership principles by

doing the following:

Simplification: As an example, his team (business) has known their direction since they were

formed in their drive to become Earth's most customer-centric firm (Andrés, 2017), and he not

only articulates but actively executes this clear transformative vision.

Motivation: Gaining support and loyalty is also reflected in their well-known internal slogan,

"Work hard. Have a great time. "Leave a lasting impression." He was known for his ability to

encourage and drive his employees without becoming excessively attached to them personally,

according to his coworkers.

by providing them with prerequisites like online knowledge bases.

Innovation: Amazon's fundamental values include "nurturing enthusiasm for creation," one of

four key principles. As a result, Jeff Bezos strives to "create a culture of creativity and creation."

Mobilization: When confronted with turbulence "at the distribution centers, he came to rely on a

young executive called Jeff Wilke, whose intellectual and occasionally impatient managerial

style mirrored his own" is a job fit for a transformational leader. The renowned Carnegie's idea

of building the right team and motivating and equipping competent members of the team is also

something he recalls (Fisher, et al., 2020).

Preparation: Instilling an "infinite student" mindset in his employees is a hallmark of Jeff Bezos'

leadership style.

Determination: To reach the objective, one must have the perseverance to go to considerable

lengths to get there. Then the employees may easily see that hard effort does pay off. Amazon's

business style is infused with Jeff Bezos's "charismatic" transformational leadership qualities.

3.3 Development of Amazon.com

Work Environment: The working atmosphere at Amazon may be quite demanding. Amazon, is

one of the most demanding and rigid workplaces in the high-tech industry. Amazon, according to

(Head, 2017), has the second-highest employee turnover of all Fortune 500 firms. Amazon

employees have also said that CEO Jeff Bezos berates them and expresses his opinions

frequently, never missing an opportunity to remind anybody who challenges him that he is the

CEO of the firm. As a result, Bezos' transactional management approach may lead to dissatisfied

Amazon employees.
Company Growth: Shares of Amazon.com are worth a lot of money and are expected to rise in

value in the future. Citi Bank raised Amazon’s stock from “Neutral' to 'Buy' on January 13th,

2015”. This shows that Wall Street's financial experts are confident in Amazon's growth

prospects soon, and the firm is making progress. It's important to keep in mind that most share

“upgrades focus on the top line rather than the bottom line”.

The firm also claimed again in customers and an increase in Prime Members in the final quarter

of 2014. According to (Charry, et al., 2018), despite the price hike, “Amazon gained 10 million

new Prime members and saw a 25% rise in sales. The firm continues to expand admirably in

terms of revenues, client base, and reach, which may be attributable to Bezos's vision and drive”.

Although Amazon's revenues and sales have grown and Wall Street's monetary outlook has

improved, Amazon has been dropping money for years. Rendering to (Athayde, Silva-Lugo,

Schmink, Kaiabi, & Heckenberger, 2017), despite a 23% rise in revenue, Amazon recorded a

loss of $123 million. A thorough investigation may reveal that Bezos' management approach is

to blame for both the company's losses and the sales and consumer growth that have occurred.

3.4 Relationship between Amazon.com development and Jeff Bezos’ Leadership Style
Amazon's development over the previous two decades has been made possible by Bezos'

transformative leadership style. With Bezos' vision and devotion, the firm evolved from a book

retailer to a retail force that threatens both online and offline competitors (Cheung, Burns,

Sinclair, & Sliter, 2017). “Indeed, his thirst for change and innovation is a leadership trait that

has resulted in huge revenue and sales for Amazon as well as a devoted consumer base”. Despite

his admirable efforts, Bezos' transactional leadership style may have contributed to a difficult

workplace where staff lacks the confidence to warn the extraordinary leader about his irrational

company development ambitions. According to (Tran, 2016), Amazon's enormous losses despite
revenue and sales growth might be attributed to the company's insatiable need for extending its

already massive portfolio. Bezos's desire to grow at any cost and a rapid pace is probably the

driving force behind this.

4.0 Conclusion and recommendations

depending on how people measure effective leadership. Amazon has become one of the most

recognizable brands in the world because of Bezos' unconventional management style, which

defies standard leadership ideas in the area of innovation. To summarize, Jeff Bezos is a task-

oriented, transactional, and transformative leader. Amazon is a success story in terms of

revenues, sales, and stock price research because of its management style, but it falls short when

it comes to having a pleasant workplace and making a profit. It's important to remember that

Bezos' leadership style displayed both positive and bad qualities. Bezos is a brilliant and

compelling leader, however, he is as customer-focused as he can tolerate the human limits of his

workers, and thus it is an extremely unsympathetic leadership style. Because of Bezos' exacting

standards and callous work methods, the company may develop an exploitative culture in which

workers are expected to perform according to their ideals. Bezos should tone down his

transactional leadership style to promote a more pleasant and adaptable work atmosphere at

Amazon.

Recommendations

Amazon has neglected to create a good company culture in its quest to boost productivity,

revenues, be more nimble, and anticipate the requirements of customers. “To increase

productivity, decrease employee turnover, and increase employee engagement, Bezos should

focus on developing a transformational leadership style, creating a culture that also puts the
focus on employees, and aligning the organization's structure with these new values and

cultures” (Chen, 2017). Increased earnings and a better reputation will follow as a result. In the

end, everything comes down to culture as the problem that has to be solved. it's a critical

component of a company's success since it affects how well it performs and how efficiently it

uses its assets.

Amazon CEO Jeff Bezos places the needs of his customers ahead of those of his workers. As a

result, a culture develops in which employees are treated with contempt and subjected to

unreasonable expectations. Despite its financial success and year-over-year growth, Amazon has

low levels of employee happiness and engagement. Amazon's income may increase by investing

in its culture and people, which is connected to productivity. Amazon's founder and CEO, Jeff

Bezos, is a visionary leader who has led Amazon to its current position. Other leaders have

learned from Bezon's creative initiatives (Oviedo & Bursztyn, 2016). It has been demonstrated

that former Amazon workers continue Bezos' beliefs. Many CEOs have been able to transfer and

build on Amazon's success and culture, having started as workers there. What these CEOs have

done well is to keep the good things and get rid of the bad. Amazon should learn from its ex-

employees to enhance its culture and working environment.

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