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BUS203 Organizational Behavior

Team Report

Amazon Inc.

CRN – #91653

Section – SD2

Name Email Phone Numbers

Ajay Gupta [email protected] +91 7686000035

Vansh Gautam [email protected] +91 8264613992

Shray Bhalla [email protected] +91 9115482218

Vaibhav [email protected]. +91 9876167692

Sawansukha ca

Submitted to – Prof. Giacomo Mengucci

Submitted on – November 15th, 2022

Due Date – November 15th, 2022

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INDEX

Acknowledgement……………………………………………………………...3

Certificate of Originality…………………………………………………….....4

Introduction………………………………………………………………….....5

Mission, Vision, Value statement and CSR…………….……………………...6

Efforts to maintain workforce diversity……………….……………………...10

Initiative taken to maintain work-life balance……….………………………..10

Motivation techniques……….……………………………………………….11

Decision Making Process……….…………………………………………….12

Team Dynamics……….………………..…………………………………….13

Key Leaders, Leadership style……….……………………………………….15

Major Organizational Changes……….……………………………………….20

Conclusion…………………….……………………………………………….21

References……………………….…………….……………………………….22
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Acknowledgement

We would like to express our immense gratitude to our Professor, Giacomo Mengucci for

his endless knowledge and continuous support. Through this report, we have been able to

learn a lot about Amazon Inc. It has also helped us polish our teamworking skills,

researching skills and overall understanding of the subject that is, Organizational

Behavior. We would also like to thank all the sources which have helped us in gathering

credible information that has proven to be instrumental in the completion of this project.

Lastly, we would like to thank our group members for completing this project with utmost

sincerity and cooperation.

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Certificate of Originality

We, as a group, take full responsibility for the information provided in the following case

study and pledge that we –

• Have used our own words.

• Have not indulged in any kind of cheating or plagiarism.

• Have mentioned every source of information mentioned in this report.

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Introduction

A worldwide American technology company, Amazon.com, Inc., specialises in e-

commerce, cloud computing, digital streaming, and artificial intelligence. On July 5, 1994,

Jeff Bezos started Amazon from his garage in Bellevue, Washington. It began as an online

book marketplace but has now grown to include a wide range of goods, earning it the

nickname "The Everything Store." Amazon Web Services (cloud computing), Zoox

(autonomous cars), are just a few of its numerous subsidiaries. Ring, Twitch, IMDb, MGM

Holdings, and Whole Foods Market are some of its other subsidiaries. The reach as a physical

store was significantly expanded with its purchase of Whole Foods in August 2017 for

US$13.4 billion.

Through technical innovation and "aggressive" reinvestment of its profit into capital

expenditures, Amazon has built a reputation as a disruptor of well-established sectors.

In terms of revenue and market share as of 2021, it is the biggest online marketplace, smart

speaker supplier, cloud computing service provider (AWS), live-streaming service provider

(Twitch), and Internet corporation worldwide.

Due in considerable share to its premium membership scheme, Amazon Prime, which

has more than 200 million users globally, it surpassed Walmart in 2021 as the largest retailer

in the world outside of China. It is the second-largest private employer in the United States

with 1608000 employees in 2021.

Through its Amazon Prime Video, Amazon Music, Twitch, and Audible divisions,

Amazon also distributes a range of digital and streaming content. It produces movies and

television shows through Amazon Studios, and it owns Metro-Goldwyn-Mayer since Mach

2022. It also publishes books through its publishing division, Amazon Publishing.

Additionally, it manufactures consumer goods, including Kindle e-readers, Echo gadgets,

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Fire tablets, and Fire TVs. Given its geographical reach through Alexa Internet. Amazon's

presence now has extended to 58 different countries and has 1.2 billion online users.

 Headquarter: Seattle, USA

 $1.03 trillion in market capitalization (as of November 2022)

 Amazon's annual revenue increased by 9.66% to $502.191 billion in the year that

ended September 30, 2022. Amazon's 2021 yearly revenue was $469.822 billion.

Amazon vision Statement

"To be Earth's most customer-centric organization, where consumers can search and

discover everything they would want to buy online,"

The company's vision statement reiterates its aim to become a place where all customers

feel satisfied and cared for in every way. In this regard, the following components of this

vision statement are important:

 Customer-centric company: Customer service is given top emphasis in Amazon's

company culture. As an illustration of how much the company works to astound its

customers, it often incorporates jaw-dropping deals and promotions as an indirect

incentive for customer devotion.

 Global presence: As an e-commerce company, Amazon strives to have the most

influence on the global market. The progressive growth efforts that Amazon targets

are closely related to the company's strategic approaches. It explains why the business

uses the slogan "be Earth's" as a reminder of its intention to have an effect.

Mission statement
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“Amazon is guided by four principles: customer obsession rather than competitor

focus, passion for invention, commitment to operational excellence, and long-term thinking.

Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfilment by

Amazon, AWS and services pioneered by Amazon”

(Leadership Principles, n.d.)

Organizational Structure & Culture.

It is possible to categorise Amazon's organisational structure as hierarchical. Three

CEOs and three senior vice presidents who are in charge of several crucial areas of the

company and directly answer to CEO Andy Jassy make up the senior management team.

The most essential elements of the Amazon organisational system are as follows:

Hierarchical corporate structure: The enormous scale of the company has led to the

development of a hierarchical structure at Amazon. More than 1,3 million people are

employed globally by the largest online retailer in the world according to revenue.

Hybrid project groups: When developing new products and services, Amazon's

organisational structure integrates hybrid project groups. Depending on the knowledge and

abilities needed for the project, specialists from different areas are drawn to it. These workers

may be hired on a part-time basis to work on the project while also reporting to the

departmental and project leaders, or they may work on the project full-time while solely

reporting to the project manager for the duration of the project.

Flexibility of the business: The organisational structure of Amazon incorporates

several small teams that handle various business-related issues. Jeff Bezos, the founder, and
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former CEO of Amazon, is credited with inventing the "two pizza rule." This guideline states

that teams should be small enough so that everyone could be fed with just two pizzas during

meetings. Under the new CEO Andy Jassy, the "two pizza rule" is still in effect.

Value Statement

The vision statements of almost all businesses serve as a roadmap for the organization's

operations and personnel. Sometime it will also have a set of fundamental beliefs that will

guide everything from daily operations to hiring procedures. One of the biggest and most

successful firms in the world, Amazon, also has a vision statement and a list of "leadership

principles" that outline the type of workers they hope to attract.

 Leaders are customer-obsessed

 Leaders take ownership.

 Leaders invent and simplify.

 Leaders are right, a lot

 Leaders learn and are curious.

 Leaders hire and develop the best.

 Leaders insist on the highest standards

 Leaders think big

 Leaders have a bias for action

 Leaders are frugal

 Leaders earn trust

 Leaders dive deep

 Leaders have a backbone, but commit despite disagreements

 Leaders deliver results

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Corporate Social Responsibility initiatives taken by amazon

Amazon's Assistance to Local Communities:

The e-commerce giant established the Amazon Relief Fund in 2020, with an initial

investment of USD25 million, with the goal of assisting its independent delivery service

partners and other stakeholders in coping with the detrimental effects of coronavirus

developments on the company. The business periodically conducts "Girls Who Code"

events to encourage more females to become interested in coding. The world's largest online

retailer donates money and goods to regional and national charities.

Amazon Education and Worker Empowerment:

Regardless of whether the skills are applicable to a future at Amazon, the Amazon

Career Choice Program prepays 95% of the tuition for employees to join in courses for in-

demand professions like nursing or aviation mechanic. More than 10,000 employees from all

across the world have participated in the programme to date.

Employee Health and Safety at Amazon:

6200 safety experts work for Amazon globally. The business advised all international

workers in roles that permit remote work to do so for a certain amount of time starting in

2020 owing to the potential of COVID-19 coronavirus.

The business committed more than $300 million to a variety of safety measures in

2021.

The e-commerce and cloud computing giant invested USD 15 billion in COVID-19-related

expenditures to safeguard worker health and safety.

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Efforts to maintain workforce diversity

Amazon brings a variety of perspectives, ideas, and backgrounds to the creation of

new products on behalf of their clients. Their varied viewpoints are influenced by a variety of

factors, including gender, race, age, national origin, sexual orientation, culture, educational

attainment, and work and personal experience. They are devoted to inclusion and diversity

and always seek out ways to increase effect and expand.

For all parents, including adoptive parents and parents of all genders, Amazon

provides substantial, flexible paid leave. Additionally, they offered the innovative Time Share

programme, which enables Amazon employees to split their parental leave with a partner or

spouse whose employer does not offer paid parental leave. When possible, Amazon also

offer unrestricted benefits for gender transition, such as gender affirmation. They have

internal resources to support team members and management in supporting workers who are

transitioning from one gender to another.

Amazon believe that creating a welcoming and inclusive culture is crucial to enabling

employees to perform at their highest level and is crucial to the success of our business. To

create a welcoming and inclusive workplace, they deliberately attract individuals from many

backgrounds and also take measures to guarantee that workers have a feeling of opportunity,

value, and belonging.

Amazon have nearly 40,000 veterans and military spouses working, and they

aggressively seek diverse individuals through connections with historically Black colleges

and universities, Hispanic-serving organisations, and women's colleges. Veterans and spouses
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of military personnel have thrived in difficult circumstances, making them adaptable and

resilient under stress. As a result, they contribute special value to every team at Amazon.

At Amazon, more women are working in tech positions, therefore the company is

progressing in its efforts to diversify its workforce. Several of Amazon's biggest and most

important businesses, including Amazon Fresh, AWS Public Sector, our whole delivery

process, and others, are now run by women.

Amazon hosts a lot of Internal Conferences & Learning Programs to exchange ideas

and experiences, some of which are listed below:

1. Every year, Glamazon chapters around the world take part in Pride celebrations. In

2018, they also supported the creation of Amazon's Transgender Toolkit. Additionally,

Amazon’s affinity organisations organise lectures and events for Black History Month,

Hispanic Heritage Month, and Asian Pacific American Heritage Month.

2. For the purpose of educating Amazon employees from all backgrounds on the

experiences people of colour have in the workplace and how to build supportive and inclusive

teams, CORE (Conversations on Race and Ethnicity) seminars feature outside scholars,

activists, and writers who delve deeply into a variety of topics.

3. Amazon staff members study how gender intersects with ethnicity, sexual orientation,

disability, veteran status, and other diversity-related factors during AmazeCon. Senior

external leaders in technology, entrepreneurship, entertainment, and leadership have spoken

at this conference. Additionally, it features Amazon-specific initiatives geared toward

individuals and groups.

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Initiatives taken by Amazon to maintain the work-life balance of its employees and

manage stress.

Much of the issues stem from a national work culture issue (not just at Amazon),

where the practises that frequently result in these terrible circumstances begin as simple self-

imposed routines. People in our culture are woefully unwilling to say "no" to a task, staying

down for a whole day of paid time off, or even figuring out how to care for their own

wellness.

Staff discuss how the awareness and prevention incentive from Amazon made it

simpler to get the assistance that they and their dependents require. Staff can now

momentarily choose to reduce their hours to prioritise private issues under the new policy.

Amazon has unveiled a new part-time working solution strategy as part of its

continued attempts to implement liberal ideas and promote improved work-life balance. Staff

can take advantage of shortened workweeks under the revised policy to prioritise their own

goals. Workers who have had prior conversations with their superiors and Human resources

can seek to work less hours momentarily.

Naturally, realistic restrictions and considerations for company needs regulate

Amazon's interim part-time program. Workers can seek professional advancement regardless

of the number of hours they work since all areas of the perks and policies have been carefully

considered to assure that inner work experience and changes to other positions are not

hindered. The staff's ability to exhibit upcoming talents and managerial qualities will

continue to determine how far their journey can go.

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Such rules uphold productivity and responsibility without compromising the

competence of the personnel. The approach assures that consumer aspirations are not

violated, even though targets will be changed considering the shortened periods.

Motivation techniques used by Amazon to encourage job satisfaction and increase

performance.

Amazon takes pleasure in using motivational techniques to raise and enhance

staff morale. The business genuinely values its customers, and it works hard to improve

the user satisfaction in all facets of its business. The atmosphere, growth possibilities, job

advancement, and remuneration are just a few of the elements that influence staff

enthusiasm at Amazon. Each of these elements are very important in keeping people

motivated.

Operating at Amazon is intriguing, specifically if you are motivated by your job

and enjoy receiving recognition for your exceptional potential. An option to purchase

shares as an incentive and expanded obligations are given as rewards for

accomplishment. In the workforce, inspiration is the urge to put out energy in support of

the corporation's goals and ambitions while also meeting some personal requirements.

Other approaches to staff motivation are used by Amazon, including training,

career prospects, and workplace culture. With Amazon, compensation is a major factor in

staff motivation. Amazon recognized that money, notably after it has been acquired, does

not serve as a powerful drive. Nevertheless, workers' "desire for money" is a powerful

incentive so it maintains them going.

Management must come up with innovative approaches to continually keep their

staff members as enthusiastic as feasible because Amazon has a reputation for being an
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intriguing work environment. Every business needs motivation to increase staff

engagement and production. It's because organizations always behave with a significant

level of passion and desire to see a work through to conclusion when they view it as

necessary and essential to their continued existence.

Decision Making Process

Using Previous Data

Data may be used to make many of the significant decisions made at

Amazon.com. A good example is starting a new fulfilment facility. Our current fulfilment

channel's historical data is used to evaluate potential new expansion options and predict

periodic spikes. We determine how much room we need and if we require a station for

lesser "sortable" goods or for larger things that often transport alone by taking into

account the expected product offerings, considering commodity weight and size. We

evaluate possible areas depending on accessibility to clients, transit networks, and present

facilities to minimize shipping times and lower outgoing freight costs. Data research

enhances both our pricing framework and the client satisfaction.

The Structure of ‘Unstructured’ Decision Processes

Instead of focusing on more measurable "operational" choices, they examine

how organizations make strategic, "unstructured," judgments. They start a positive

feedback loop that, over time, generates far more surplus cash flow so, as a result, makes

Amazon.com far more profitable. Similar assessments have been made regarding

Amazon Prime as well as Free Super Saver Shipping, both of whom are pricey in the

short to midterm but, in our opinion, significant and worthwhile in the long haul.
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Team Dynamics and Structure

Amazon follows a hierarchical structure with sub elements based on functional and

geographical divisions. Amazon started with a simple structure and evolved over time as its

expanded and hired more and more employees.

At the top level, a senior management team called the S team, works directly with CEO Andy

Jassy to help him solve problems, generate ideas, and much more. The S team members are

classified based on functions performed by the members –

 Finance.

 Human resources.

 Corporate affairs.

 Amazon Web Services (AWS).

 Worldwide consumers.

 Amazon devices and digital management.

 Worldwide operations.

 Legal and secretariat.

Amazon has divided its teams based on two geographic divisions, North America and

International. This approach helps the company to meet region specific demands and

expectations proactively. Work is done in smaller teams. Efficiency and Scalability is the
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goal. For e.g., Teams meant for developing new product lines focus solely product

development while other duties like processes and logistics are handled by other teams.

The organizational structure of Amazon is depicted below.

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Key Leaders at Amazon Inc.

A company as big as Amazon cannot perform well without proper planning and guidance.

Good leaders are not only responsible for their own work but also influence the productivity

of their colleagues. Amazon’s key leaders are all highly charismatic and knowledgeable

people.

Jeffrey P. Bezos (Executive Chair)

Jeff founded Amazon in 1994 with an aim to be the most

consumer-centric company in the world. He is also the

founder of an aerospace company called Blue Origin.

Bezos is known for his philanthropy through two of his

organisations, The Bezos Earth Fund and The Bezos Day

One Fund. He also owns the Washington Post. Bezos has a degree in electrical engineering

and computer science from the Princeton University.

Andy Jassy (President and Chief Executive Officer)

Andy joined Amazon in 1997 and held various key roles

across the company. He founded Amazon Web Services

and serviced as its CEO from April 2016 to July 2021. He

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was appointed the CEO of Amazon immediately after his tenure as the CEO of AWS. He has

a BA degree from Harvard University and an MBA from Harvard Business School.

Brian T. Olsavsky (Senior Vice President)

Brian became part of Amazon in April 2002. He is

responsible for handling Amazon’s financial activities. He

has a BS in Mechanical Engineering from Penn State and

an MBA in finance from Carnegie Mellon University.

Other notable officers working at Amazon are –

 Douglas J. Herrington (Chief Executive Officer, Worldwide Amazon Stores)

 Shelley L. Reynolds (Vice President. Worldwide Controller)

 Adam N. Selipsky (Chief Executive Officer, Amazon Web Services)

 David A. Zapolsky (Senior Vice President, General Counsel and Secretary)

Amazon’s Board of Directors consists of -

 Jeffrey P. Bezos

 Andy Jassy

 Keith B. Alexander

 Edith W. Cooper

 Jamie S. Gorelick

 Daniel P. Huttenlocher

 Judith A. McGrath

 Indra K. Nooyi
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 Jonathan J. Rubinstein

 Patricia Q. Stonesifer

 Wendell P. Weeks

Leadership Style

Amazon has curated a set of principles which make are followed by everyone who is a

part of the company. These principles make Amazon’s Organizational Behaviour unique

and different from others.

Customer Obsession

All activites undertaken by the leaders at Amazon are customer oriented and benefit

the customers the most.

Ownership

Leaders do not let short-term goals take precedence over the long-term goals. They do

not display selfish behaviour always work for the betterment of the whole company.

Invent and Simplify

Leaders are always searching for new and innovative opportunies. They try simplify

things for their collegues for better effectiveness and efficiency.

Are Right, A Lot

Leaders should trust their own judgement. They should seek diverse perspectives

from their collegues to solidify or mend their decisions to decide whats best for the

company.

Learn and Be Curious

Leader should always keep learning and improving themselves.

Hire and Develop the Best

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Leaders are best developing Leaders. They should work towards finding exceptional

talent and share their knowledge and expertise with them to improve them.

Insist on the Highest Standards

Leaders need to have high standards. They need to work towards meeting and raising

these standards. Sometimes others may think of the standards as unrealistic. It is the duty

of the leaders to motivate them to work towards meeting the set standards.

Think Big

Leaders should think big and instill the same behaviour in their collegues and juniors.

Bias for Action

Speed is key in business environment. Some decision do not need much analysis

before their implementation. Leaders should identify such instances and take action.

Frugality

Leaders should work efficiently. Their motto should be to “accomplish more with

less”.

Earn trust

Leaders should earn the trust of their colleagues. This can be done by repecting them

and being self-critical.

Dive Deep

Leaders should be aware of all the details.

Have Backbone; Disagree and Commit

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Leaders are obligated to challenge others’ decisions if they feel they are not right.

They should not let social cohesion take precedence over the overall benefit of the

company.

Deliver Results

Leaders deliver good results on the right time. Despite setbacks, they rise to the

occasion and prove their worth.

Strive to be Earth’s Best Employer

Leaders ensure that they are providing their employees a safe and fun working

environment. They present their employees with ample learning opprtunities and make

sure they are motivated at all times.

Success and Scale Bring Broad Responsibility

With great success comes great responsibility. Decisions of a company as big as

Amazon impact the whole world. Leaders should take their resposibilties seriously and act

accordingly.
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Major Organizational Changes

Organizational Environment in a company like Amazon is very dynamic and tends to evolve

with time. The three major orgnaisational changes that took place at Amazon in the past three

years are –

1. The most significant change came in the form of Andy Jassy replacing company

founder Jeff Bezos as the company CEO on July 5, 2021. Jeff held the position of

CEO since the company’s inception. Jeff Bezos stated that he wished to focus more

on his other ventures as the reason for stepping down as the CEO.

2. Year 2021 saw a major reshuffle in senior leadership of Amazon. Apart from Jeff

Bezos stepping down as the CEO, Jeff Wike and Charlie Bell left the company for

other ventures. Jeff Wike was the Amazon Consumer CEO and, Charlie Bell was a

senior executive who left the company and joined Microsoft.

3. Jeff Bezos and an early leadership team came up with the 14 Amazon Leadership

Principles. These principles have been a core guiding factor for the company culture.

Almost 27 years after the company’s inception, 2 more principles, “Strive to be

Earth’s Best Employer”, “Success and Scale Bring Broad Responsibility” were
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added making it 16 Amazon Leadership Principles. These principles have been added

in response to the criticism the company was facing with regards to its employee

management culture.

Conclusion

Amazon.com, Inc., an international American technology corporation, specialises in

cloud computing, digital streaming, artificial intelligence, and e-commerce. In this research,

our team's findings and observations on Amazon show that it is a rapidly expanding business

that places a high priority on its workers, suppliers, and clients. Amazon takes its ideals and

ethical principles very seriously. By launching new campaigns both inside and outside the

company, as seen by their CSR activities, Amazon performs a significant amount of social

work. Many of Amazon's programmes encourage employees to enrol in courses and offer

financial aid in order to help them advance their skills.

For the benefit of its customers, Amazon draws on a diverse range of viewpoints,

concepts, and backgrounds when developing new goods.For the benefit of its customers,

Amazon draws on a diverse range of viewpoints, concepts, and backgrounds when

developing new goods. Their differing perspectives are impacted by a wide range of

variables, including gender, race, age, national origin, sexual orientation, culture, level of

education, and job and personal experience. They are committed to diversity and inclusion

and are continually looking for new methods to broaden their influence. for instance, Amazon

offers generous, flexible paid leave to all parents, including adoptive parents and

parents of all genders.

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Sustaining a work life balance involves time and commitment, much like creating

new routines or habits. It takes time to establish balance. Finding an equilibrium that operates

well for you may need some adjustment, reordering, or prioritisation of responsibilities.

You'll ultimately realise that each habit has assimilated into your daily existence. You'll

experience progress and achieve equilibrium in both your private and corporate lives.

Executives need to come up with innovative approaches to continually keep their staff

members as engaged as possible because Amazon has a reputation for being an intriguing

work environment. Every business needs motivation to increase staff efficiency and

production.

When it came time to make crucial choices for the firm, Jeff Bezos followed a certain

set of guidelines that helped Amazon achieve enormous success. Bezos clarified, "Customers

are consistently, amazingly unsatisfied. We consistently innovate on behalf of our consumers

out of a perpetual desire to satisfy them." Bezos occasionally took choices that could have

hurt Amazon's financial performance but benefited customers.

Success of every large scale corporation is result of the hardwork put in by its great

leaders. Jeff Bezos, Andy Jassy, and Brian Olsavsky are few of the notable individuals who

have made Amazon such a huge company. Good leaders motivate their employees to work

for the betterment of the company and its elements. The leaders themselves are selfless and

always work for the benefit of the company and its employees. Amazon in particular follows

a very distinct style of leadership with its 16 Leadership principles. Amazon is continually

evolving with regards to its organizational structure and behaviour.

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Amazon’s global career site. (n.d.). Amazon.jobs. Retrieved November 15, 2022, from
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Amazon’s new management principles are a sign of the times for corporates. (2021, July 3).
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Leadership Principles. (n.d.). US About Amazon. Retrieved November 15, 2022, from
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