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Globalizing Managing Employee Performance And Reward

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Discuss about the Globalizing Managing Employee Performance and Reward.
 
 

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Introduction

Human resource management is an integral part of the organizational strategy. It is considered as one of the pillar of organizational structure. The success of the organization is highly dependent on human resource department of an organization. It works as a bridge between the organizational authority and organizational employees. Human resource managers possess the capability of influencing organizational performance.

Amazon is one of the renowned e-store that provides wide range of products to its consumers. Although, initially it was started as e-book store, recently it deals with cloths accessories and various other products. It is known as a huge profit making business organization. The below mentioned article has concentrated on HR practices of Amazon. Therefore, the relevance of this consultancy report will regard the specific approaches, which will be considered for meeting and analyzing the best solutions and approaches for Human Resources.

The study in this report has gone through various aspects of the Human Resource Management. Along with that, the report also discusses about the theoretical aspects used by the company Amazon in their e-commerce business in the HR departments. The report also analyzes the HR tactics and policies applied by the organization Amazon.com.

Amazon is one of the established organizations, which deals in e-commercial business.  It begun its journey 22 years ago as a small venture in order to accomplish and capitalize on the changing scenario of retail. Amazon.com is essentially an American based organization, which has established the importance of online retailing sector (amazon.com 2017).  Established by Jeff Bezos it is one of the most incredible organization, which generally retails in electronic accessories.  It is available in numerous countries and is regarded as one of the reputed organization in the e-commercial sector (Varia and Mathew 2014). Essentially, Amazon began as an e-bookstore but later expanded extensively in electronic consumer goods along with several other consumer goods, which is important to consider the valuation of the company. The organization have expanded and over the years have incorporated a range of services and a number of subsidiaries which has integrated the virtual retailing tendencies along with the specifications of the  current trends.  It is one of the valuable assets behind the glorified popularity of the conglomerate among its contemporaries. Owing to its reputation and market valuation Amazon was regarded as the “fourth most valuable companies” based on a market research of 2016 (Kantor and Streitfeld 2015). This is in coordination with the approaches of the technological improvement as it is mainly in retailing of electronic gadgets. Being a leading business organization, human resource department of Amazon plays a crucial role to influence the growth of the organization. It is hard to securitize the operation of human resource department of Amazon.  Strategically utilizing and drawing valuation from the human resource has been one of the best approaches of Amazon. Moreover, according to a survey, the retailing giant has been revealed to have one of the best working environments. The workstation and the culture prevalent in Amazon have been associated with the effective collaboration leading to remarkable productivity. The task of executing and practice of human resourcing is considered as one of the integral decision of the organization, which is essentially important for analyzing diverse factors that is responsible for the retention of employees. A few equally significant factors are dependent on the equation and aspects of the organization regarding to the Human Resource Management scenario (Wagner III and Hollenbeck 2014). In this context, it is extremely crucial to understand and comprehend, the best polices about Amazon, which aids in supervising the practices of the Human Resources (Akingbola 2013). 

 

Human Resource Approach in Amazon.com

The definition of human resourcing entails the hiring and recruiting process that is essential for obtaining the utility of the other resources. The work force and the people are considered as the most functional elements of an organization, therefore it is important to analyze the different opportunities and effectively enforce towards its development (Sparrow, Brewster and Chung 2016). The main ingredient of this important service in recruiting and hiring the best opportunity is the appropriation of the right people at the right place for the right purpose (Armstrong and Taylor 2014). The concept of managing and supervising human resource in a more comprehensive and extensive in manner is known as Human Resource Management.  According to Akingbola (2013), the basic mission of human resources will always be to acquire, develop, and retain talent; align the workforce with the business; and be an excellent contributor to the business. Those three challenges will never change. According to Purce (2014), the central three constituents of HRM will align effectively with each other which associate the development, acquisitions and retention of the talent.  He further asserts that the mission of human resources of any organization will always be to employ means and environment to the resources so that it might yield the excellent result.  According to Varia and Matthew (2014), the workforce is one of the valuable assets of the organization as secondary resources depend on the workforce to operate it.  The practices of retaining a strong human infrastructure for the organization are apparently one of the central objectives, which aids in regulating and adapting according to the rules and regulations of the management (Shields et al. 2015).

The contextual factors of the workforce management are central to strategies of the organization of any kind of organization. It is the specific division of an organization, which deals with the hiring procedures and training work force.  Managing and regulating a human resource is extremely necessary for the well-being of an organization. The best and effective way is to obtain the maximum productivity out of the employees (Schuler and Jackson 2014). To obtain the highest efficiency in the most effective way is the principal aim of human resource management. This involves an array of activities such as inspecting different posts, acclimatization and training of the recruited staffs, administering the pay scale and remuneration and other wages. In addition, allowance of incentives, evaluating the performance of the workforce, strategizing according to the requirements of the company, resolving differences among the employees and corresponding with each department of the organization should also be taken care of (Van de Ven et al. 2013). HRM is defined as the tool, which is used for the purpose of effective coordination and strategies and workplace scenarios.   

Strengths and Weaknesses of Best Fit approach

The best fit: The model of Best-fit is defined through a keyword of best strategy. It is a strategy based Human Resource Practices, which is essential for the efficient performance and functions of the organization (Amin et al. 2014). The procedure of deploying human resource and the activities related to it intend to facilitate the firm in achieving the desired aim. The notion of best-fit model is involved in some kind of alignment with the reward systems and competitive comprehension. The task of executing and practice of human resourcing is considered as one of the integral decision of the organization, which is essentially important for analyzing several factors that is responsible for the retention of employees (Tyson 2014). A few equally significant factors are dependent on the equation and aspects of the organization in the scenario context of the Human Resource Management (Kantor and Streitfeld 2015).

The work force and the people are considered as the most functional elements of an organization, therefore, it is important to analyze the different opportunities and effectively enforce towards its development. The main ingredient of this important service in recruiting and hiring the best opportunity is the appropriation of the most suitable person’s at the most appropriate place for the precise purpose (Peccei and Voorde 2014). It has observed by many scholars that the fundamental purpose of human resource management is to obtain, improve and preserve talent in the company. Besides, human resource management also aims the workforce to bring into line with the trade so that they become an outstanding support to the business. The contextual factors of the workforce management are central to strategies of the organization. HRM refers to that definite segment of an enterprise, which operates to hire and train the workforce.

Recruitment policies are an inherent part of any organization. It is the process by which employees are recruited in a firm. However the fact, there are a number of relative factors which  are central to the maintenance and supervision of the human resource which is one of the prime responsibility of the HRM. Amazon is one of the most preferred organizations to work with as it has been revealed by a poll conducted in order to judge the best of the environment, which is work friendly and enhances the employee retention capacity for the organization. There are some key legislation and policies that regulate the notion of the human resources and in order to make it more effective, organization must be able to adapt practices like Amazon (amazon.com 2017).    It employs effectiveness and efficiency by incorporating work systems that are in coordination with the environment of the force.  The aspect of the recruitment polices provides a thorough framework involving the legal, social and other conundrums of the specific scenario. The negotiations of resources depends on the ability to account for the cost raised and the employee should be able to find work like balance, therefore it is a two way process that has enabled and stimulated the workplace policies (Renwick, Redman and Maguire 2013). The concept of diversity is an inevitable part considering more acceptances and a wider appeal of diversity issues, which has taken place within some years (Kantor and Streitfeld 2015). Diversity resolvs all kind of discrimination and supports the heterogonous state of recruitment standards. The impact of  globalization have been helpful in the sense that it has aided and improved the patterns of diversity and respects the inclusion of talented individual on the table without judging on their color, race, gender and ethnicity. Amazon has a number of women from different parts and caste and the opportunities of third gender community are largely observed in Amazon.  Flexibility in regards to the involvement of diverse set of employees belonging from different strata is one of the best policy and approach, which is crucial for its operation. It also contributes to the organizational effectiveness and assesses the required scenario and cooperation for different culture that meet. It encourages cross-cultural associations and helps in building a community, which is based on communal harmony and not with any kind of discrimination. In fact, each and every employee is entitled to the same set of values and benefits for being a contributor to the business.  Therefore, Amazon observes some of the best diversity policies, which entail the best effort of all-individual and regard it as one of the prime factors for its successful orientation. The policy that focuses on diversity has to evolve accordingly and not stick to the dominations of gender or any specific strata of the society and resource from only one class and adapt rigid practices.

This aforementioned model notes the growing competency and empowerment capabilities regarding to excellent performance assessment. The commitment and values of cooperation are transferable in the best practice model framework. These theories are most popular for the incorporation and implementation of human resource practices across several enterprises (Jackson, Schuler and Jiang 2014). Among all these theories, the most suitable practice model worth to be adopted is concrete theory. Therefore, since the hypotheses are pluralist, it is recommended to adopt the best practice. The procedures of best practice model have implications that are followed in the results.  It is a more feasible and comfortable method and the implications are comparatively positive. The task of executing and practice of human resourcing is considered as one of the integral decision of the organization, which is essentially important for analyzing diverse factors that is responsible for the retention of employees (Al Ariss, Cascio and Paauwe 2014). Several equally significant factors are dependent on the equation and aspects of the organization regarding to the state of Human Resource Management.  Regardless of various analysis and stock valuation, focusing or catering on the internal factor of human resource have proved to be more helpful for the enhancement and improvement of the business operations. Therefore, executing and adapting to better practices and performance can be resourced on the employees who are centripetal force of the enterprise (Bamberger, Biron and Meshoulam 2014). Essentially, Amazon began as an e-bookstore but later expanded extensively in electronic consumer goods along with several other consumer goods, which is important to consider the valuation of the company. The organization have expanded and over the years have incorporated a range of services and a number of subsidiaries which has integrated the virtual retailing tendencies along with the specifications of the  current trends (Varia and Mathew 2014).

 

PESTEL Analysis and its influence in HR practices

The theory of PESTEL analysis consists of the Political, Economic, Social, Technological and Legal factors affecting the work culture, working environment, the motivational approaches by the organization and the human practices for resourcing the operational work in the organization.

Political: As per the regulations enforced by the Government of Greece, there should be fixed-term contracts prohibited for the permanent jobs. Along with that, the minimum wage applicable to workers should be around $740.7. The government supports the blue collar workers in the country, hence the organization Amazon needs to follow the strict rules as guided for the job shifts and wage rates (Doingbusiness.org, 2017).

Economic: The unemployment rate is 23.50% of the total workforce of the country. Along with that, the portion of the full time employed workers is almost 10 times the part time workers. The labour cost is frequently changing in various industries and hence the various industries use to face issues with the wage rate of the employees. The population of the Greece is around 11 million. Thus, the organization Amazon has the power to recruit good workers form the labour market. However, there are many skilled labours in the industry that can help Amazon to get the best workers in their workforce (Tradingeconomics.com, 2017).

Social: In the country Greece, there are various social issues affecting the labour market and the human resource strategies of the companies. Amazon is a major organization in the country operating in the e-commerce sector, use to provide sufficient labour wages, hence the organization use to face less social issues in the organization.

Technological: The e-commerce industry in the country is having various growth opportunities due to the advancement of the technological sector in the country. The government of the country also invests in the development of the technological sectors. However, the technological advancement has taken place in the HR department of the various companies also. The companies are getting help in the recruitments through the online websites providing the information of the eligible candidates in the country. Henceforth, the company Amazon has the opportunity to get ease in recruitment processes (Researchleap.com, 2017).

Environmental: The country Greece has various environmental issues such as pollution and the health issues among the employees. Though, the organization is not facing such problems in the organization since they use to provide various support to their employees.

Legal: The developments in the IT and communication, e-commerce sectors has supported the organizations to employ various policies regarding the wage rates, work hours, job rotations and shift policies. The government of the country has made some strict rules regarding the job rotation, shift timings and the wage rate for the workforces in various organizations working in the e-commerce sector. The policies by government enforce Amazon to maintain a balancing situation in the payment aspects (Doingbusiness.org, 2017). The government policies of working hours are; 6 days of work per week is maximum, night work shift should have the extra wage of 25%, the overtimes should have extra wage of 27.5%. There are also restrictions regarding the weekly holidays in the companies for each and every employees.

 

Recommendation

The account of the research purpose is to verify the significance of Human Resource Management exercises, which is considered as one of the most indispensible part of any organizational structure (Boon et al. 2014). The consultancy report will explore and critically analyze the importance of the appropriate Human Resource Practices, which is a significant potent factor aiding in assessment power of the employees as well as the management. The report entails the objectives of a huge conglomerate, Amazon that is responsible for the importance and management of the Human Resource. A number of equally significant factors are dependent on the equation and aspects of the organization respecting the Human Resource Management (Chen and Miller 2015).

The task of executing and practice of human resourcing is considered as one of the integral decision of the organization, which is essentially important for analyzing a number of factors that is responsible for the retention of employees. A few equally significant factors are dependent on the equation and aspects of the organization as regards to the Human Resource Management (Gatewood, Field and Barrick 2015). The organizational management must consider all these factors while constructing organizational strategy. Therefore, the relevance of this consultancy report will regard the specific approaches, which will be considered for meeting and analyzing the best solutions and approaches for Human Resources. The concept of managing and supervising human resource in a more comprehensive and extensive in manner is known as Human Resource Management. Besides, human resource management also aims the workforce to bring into line with the trade so that they become an outstanding support to the business. The practices of retaining a strong human infrastructure for the organization are apparently one of the central objectives, which aids in regulating and adapting according to the rules and regulations of the management (Shields et al. 2015). The contextual factors of the workforce management are central to strategies of the organization. HRM refers to that definite segment of an enterprise, which operates to hire and train the workforce. The figurative approach in the case of aligning with the relative tools of the computation technology is necessarily an important factor in this case which will enable the congruency with the rest of the other features and services of the brand. The design and technology must be feasible for its use and become more users friendly apparently with time (Sangwine and J 2013).  The architecture is central as it should be presentable along with the procurement and utilities it promises to serve rather than just a mere tool.

 

Conclusion

In addition, allowance of incentives, evaluating the performance of the workforce, strategizing according to the requirements of the company, resolving differences among the employees and corresponding with each department of the organization should also be taken care of. Human Resource Management is defined as the tool, which is used for the purpose of effective coordination and strategies and workplace scenarios. The human resource management of the retail giant firm has maintained and of the superior level that has resulted in the higher level of employee retention in the company. Apart from this, it is also notable how Amazon has successfully been recruiting workforce from across the world to deliver the best possible services. In addition, employee satisfaction is also a significant issue that has been well administered by the policies of the organization. It is available in different countries and is regarded as one of the reputed organization in the e-commercial sector. The involvement of the cloud computing business of Amazon is one of the best features of the being regarded as the best network service provider (Varia and Mathew 2014). This is extremely crucial to understand and comprehend, the best polices about Amazon, which aids in supervising the practices of the Human Resources.

 

References:

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Amazon.com. (2017). Amazon.com:

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Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management practice. Kogan Page Publishers.

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Boon, C., Belschak, F.D., Den Hartog, D.N. and Pijnenburg, M., 2014. Perceived Human Resource Management Practices. Journal of Personnel Psychology.

Chen, M.J. and Miller, D., 2015. Reconceptualizing competitive dynamics: A multidimensional framework. Strategic Management Journal, 36(5), pp.758-775.

Doingbusiness.org. 2017. Labor Market Regulation in Greece - Doing Business - World Bank Group. [online] Available at: https://www.doingbusiness.org/data/exploreeconomies/greece/labor-market-regulation

Gatewood, R., Feild, H.S. and Barrick, M., 2015. Human resource selection. Nelson Education.

Gupta, M., 2016. AN EMPIRICAL STUDY ON FIT BETWEEN STRATEGIC HUMAN RESOURCE MANAGEMENT AND BUSINESS STRATEGY. International Journal of Management Research and Reviews, 6(2), p.102.

Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic human resource management. The Academy of Management Annals, 8(1), pp.1-56.

Kantor, J. and Streitfeld, D., 2015. Inside Amazon: Wrestling big ideas in a bruising workplace. New York Times, 15, pp.74-80.

Peccei, R. and Voorde, K.V.D., 2014. Human resource management and performance. Wiley encyclopedia of management.

Purce, J., 2014. The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.

Renwick, D.W., Redman, T. and Maguire, S., 2013. Green human resource management: A review and research agenda. International Journal of Management Reviews, 15(1), pp.1-14.

Researchleap.com. 2017. Factors influencing e-commerce development: Implications for the developing countries. [online] Available at: https://researchleap.com/factors-influencing-e-commerce-development-implications-for-the-developing-countries/

Rosemann, M. and vom Brocke, J., 2015. The six core elements of business process management. In Handbook on business process management 1 (pp. 105-122). Springer Berlin Heidelberg.

Schuler, R. and E. Jackson, S., 2014. Human resource management and organizational effectiveness: yesterday and today. Journal of Organizational Effectiveness: People and Performance, 1(1), pp.35-55.

Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., Robinson, J., O'Leary, P. and Plimmer, G., 2015. Managing Employee Performance & Reward: Concepts, Practices, Strategies. Cambridge University Press.

Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management. Routledge.

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Varia, J. and Mathew, S., 2014. Overview of amazon web services. Amazon Web Services.

Wagner III, J.A. and Hollenbeck, J.R., 2014. Organizational behavior: Securing competitive advantage. Routledge.

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