Amazon Case Study: Organization and Leadership Review

Posted: March 27th, 2020

Amazon Case Study: Organization and Leadership Review

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Amazon Case Study: Organization and Leadership Review

1.         Given the differing the appraisal systems described in this chapter, which appraisal systems most closely resemble Organizational and Leadership Review (OLR)?

The narrative method resembles the OLR measure based on its reliance on the manager’s input. Accordingly, it provides the manager with the chance to offer an evaluative assertion regarding an employee. While the OLR does not accentuate written statements, it requires the managers’ evaluation regarding the least effective and most effective employees. Another method that closely correlates to OLR involves the critical incidents method, which focuses on the development of records that describe the employee’s positive and negative level of performance (Lussier & Hendon, 2018). Similarly, the method relies on the anecdotal and personal experiences since managers ascertain whether an employee is effective depending on his or her approach towards different incidents. Interestingly, OLR relates to the respective method due to its dependence on the employees’ experiences rather than data as illustrated in measures such as the BARS Form and Graphic Rating Scales Form.

2.         Given your answer to the above question, what appraisal system do you think would best meet Amazon’s objectives of retaining the best employees while taking corrective action with the bottom 10%?

The appraisal system that would best satisfy Amazon’s objectives involves the critical incidents method. The measure in question appraises employee performance throughout the evaluation period by focusing on the type of performance that the individual exhibited (Murphy, Cleveland, & Hanscom, 2018). For Amazon, the focus lies on the effectiveness of its employees, specifically their ability to establish the best possible customer service. Hence, to retain its most effective employees and deal with the 10 percent that is least effective, the critical incidents method will prove useful to the firm’s needs since it will offer an evaluative review of Amazon’s employees based on their respective experiences. According to Lussier and Hendon (2018), management usually “keep track of incidents with each employee, in either hard-copy or electronic form” (p. 276). As such, the concept of “critical incidents” will be applied as a way of gathering information on how well or bad an employee responded to a particular situation.

3.         Amazon is a high-technology firm. How might it use electronic performance monitoring to supplement the OLR process?

Electronic performance monitoring may prove essential in supplementing the OLR process. Electronic performance monitoring (EPM) focuses on the observation of current employee activities via the application of technological approaches such as computers (Lussier & Hendon, 2018). In this respect, the process may be utilized as an amassment/collection of information regarding the behavior that employees have exhibited within a particular period. Since OLR relies on anecdotal and personal experiences, the EPM will supplement the respective process by providing correct information regarding the activities and behaviors that employees exude during their work hours (Lussier & Hendon, 2018). Additionally, EPM will supplant the approach in question by enabling it to determine the most effective and least productive employees that require either a promotion or corrective action respectively. As a contributive factor to increased levels of productivity among employees, EPM will facilitate OLR’s objectives, which primarily involve determining the right employees necessary for the attainment of Amazon’s goals.

4.         What are the advantages and disadvantages of having performance reviews like OLR that only involve one-way communication, rather than MBO?

The key benefit of having performance reviews such as OLR that involve one-way communication involves the ability that leaders/managers attain in assessing and reviewing the employee’s performance. Rather than rely on feedback, management possesses an unbiased platform to assess and evaluate the performance of their employees by concentrating specifically on their experiences within the workplace (Kirkpatrick, 2014). However, the disadvantages that involve one-way communication outweigh the advantages. With this form of interaction, it is impossible to interact and develop measures that will help both employees and managers to improve in line with the firm’s aims. For instance, The Management by Objectives (MBO) approach creates opportunities that allow employees and managers to work collaboratively to determine the challenges and establish better methods aimed at improving the particular situation (Lussier & Hendon, 2018). In this respect, two-way communication is considerably beneficial in performance appraisals that inculcate the feature in question for evaluative and developmental purposes.

References

Kirkpatrick, D. L. (2014). Improving employee performance through appraisal and coaching. New York, NY: American Management Association.

Lussier, R. N., & Hendon, J. R. (2018). Human resource management: Functions, applications, and skill development. Los Angeles, CA: Sage Publications.

Murphy, K. R., Cleveland, J., & Hanscom, M. E. (2018). Performance appraisal and management. Thousand Oaks, CA: Sage Publications.