George Mason University Define The Amazon Problem I have the assignment attached bellow with the rubric. Let me know if you have any question. MGMT 313 Reaction Papers (2) are evaluated using the following Grading Rubric:
Criteria
1. Submits well organized paper within 1500
word limit that includes a thesis
statement and a conclusion
2. Integrates at least 3 organizational
examples from personal experience in
the discussion.
3. Represents a solid understanding and
implementation of course material
covered to date into the writing
assignment.
4. Includes at least 3 peer reviewed
references external to the article/book/or
concept reacting to for the assignment
5. Use APA Style Guide for all citations
6. Complete Reference List
0%
Unacceptable
70%
Developing
The student
submits a paper
that does not meet
accompanying
criteria.
The student
submits a paper
that partially
meets the
objectives as
outlined in the
criteria.
85%
Competent
The student
submits the
minimum number
of required
components as
outlined by the
criteria.
95-100%
Exemplary
Student meets
and exceeds all
required criteria.
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Kinicki - Organizational Behavioi Aa
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problem you defined in Step 1? This might lead
to the conclusion that the characteristics
Amazon uses to select and hire employees
contribute to the problem.
B. Follow the same process for the situation factors.
For each ask yourself, Why is this a cause? For
example, Amazon's HR practices likely have
some effect on the problem you defined. If you
agree, which specific practices and why?
Leaders (managers and Bezos) greatly influence
employees' experiences at Amazon. Do they
cause the problem you defined in Step 1? If yes,
then why? By following the process of asking
why multiple times you are likely to arrive at a
more complete and accurate list of causes. Again,
look to the Organizing Framework for guidance.
C. Now consider the Processes box in the
Organizing Framework. Are any processes at
the individual, group/team, or organizational
level potential causes of your defined problem?
It certainly seems that their emotions are notable
aspects of Amazon employee experiences. Do
they help explain the problem defined in Step 1?
What about performance management? For any
process you consider, ask yourself, Why is this a
cause? Again, do this for several iterations to
arrive at the root causes.
D. To check the accuracy or appropriateness of the
causes, be sure to map them onto the defined
problem.
Step 3: Make recommendations for solving the
problem. Consider whether you want to resolve it,
solve it, or dissolve it (see Section 1.5)? Which
recommendation is desirable and feasible?
A. Given the causes identified in Step 2, what are
your best recommendations? Use the material in
the current chapter that best suits the cause.
Remember to consider the OB in Action and
Applying OB boxes, because these contain
insights into what others have done. Details of
this case, for instance, describe how Amazon
has particular stock vesting practices to help
ensure retention. This might be part of the
solution, but is it sufficient?
B. Be sure to consider the Organizing Framework-
both person and situation factors, as well as
processes at different levels.
C. Create an action plan for implementing your
recommendations.
LEGAL/ETHICAL CHALLENGE
Companies Shift Smoking Bans to Smoker Ban
An increasing number of companies are using smok-
ing as a reason to turn away job applicants. Employers
argue that such policies increase worker productivity,
reduce health care costs, and encourage healthier life-
styles. They raise the ante on earlier and less effective
efforts, such as no-smoking work environments, cessa-
tion programs, and higher health care premiums for
smokers.
"Tobacco-free hiring" often requires applicants to
submit to a urine test for nicotine, and violations by
new hires are cause for termination. The shift from
"smoke-free" to "smoker-free" workplaces has
prompted sharp debate about employers intruding
into employees' private lives and regulating legal
behaviors.
Some state courts have upheld the legality of re-
fusing to employ smokers. For example, hospitals
in Florida, Georgia, Massachusetts, Missouri, Ohio,
Pennsylvania, Tennessee, and Texas, among others,
stopped hiring smokers. Some justified the new poli-
cies as ways to reduce health care costs and to ad-
vance their institutional missions of promoting personal
well-being.
Supporters of these policies note that smoking con-
tinues to be the leading cause of preventable death.
About 17 percent of U.S. adults still smoke, 97 and
smokers cost approximately $5,800 per person per
year in lost productivity and additional health care ex-
penses.98 Moreover, smokers are not recognized as a
protected class, which means they typically are not
covered by anti-discrimination laws. Opponents argue
that such policies are a slippery slope. Some say that,
legality aside, implementing anti-smoker policies is in
principle the same as discriminating on the basis of
gender, race, or disease (alcoholism). Furthermore,
successful nonsmoker policies may lead to limits on
other legal employee behaviors, like drinking alcohol,
eating fast food, and participating in dangerous sports.
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personal loss for the sharer and a gain for somebody
else. Moreover, other's ideas are not just scrutinized;
they are undermined. Groups of employees often con-
spire against others on the peer feedback system to
get ahead (or to put somebody else behind). As for
managers, they must both defend the direct reports
they deem most valuable to their own performance,
and at the same time determine whom they can sacri-
fice-not everybody can pass the performance test. 92
most valuable asset is ground up and discarded in
such a way and at such a high rate.
96
To be fair, surely some percentage of the company's
more than 150,000 employees are quite satisfied and
successful. The system works for some, and for many it
works for some period of time. And the incredibly high
bar, marquee name, and extreme work ethic required
to get hired at Amazon make former Amazonians very
valuable to the company's competitors and many other
companies both inside and outside the technology
industry.
APPLY THE 3-STEP PROBLEM-
SOLVING APPROACH TO OB
AMAZON = BEZOS
Much of the praise and many of the complaints are di-
rected to Jeff Bezos. Not only is he the founder and
CEO, but he also is the chief architect of all things
Amazon. His personality is embodied in the company
values and the way it operates. Like Bezos himself,
employees are expected to use data, confront, perse-
vere, and win. This approach appeals to and is sustain-
able for only a very specific type of employee. One
former employee described Amazon's hiring process
as panning for gold."93 The company is looking for the
rare stars who can thrive in its demanding environ-
ment, and it must sift through many, many people to
find them.
This strategy is a real challenge for Amazon. Its size,
growth rate, and turnover require the company to hire
thousands and thousands of employees every year,
and this doesn't include the thousands of temporary
workers it hires to meet the holiday rush. Interviews
with male employees in their 40s revealed that many
are convinced Amazon will replace them with employ-
ees in their 30s, who worry in turn that the company
prefers employees in their 20s. The implication?
Younger employees have fewer commitments and
more energy. 94
Step 1: Define the problem.
A. Look first at the Outcome box of the Organizing
Framework in Figure 3.6 to help identify the
important problem(s) in this case. Remember
that a problem is a gap between a desired and
current state. State your problem as a gap, and
be sure to consider problems at all three levels.
If more than one desired outcome is not being
accomplished, decide which one is most
important and focus on it for steps 2 and 3.
B. Cases have protagonists (key players), and
problems are generally viewed from a particular
protagonist's perspective. You need to determine
from whose perspective-employee, manager,
team, or the organization-you're defining the
problem. As in other cases, whether you choose
the individual or organizational level in this case
can make a difference.
C. Use details in the case to determine the key
problem. Don't assume, infer, or create problems
that are not included in the case.
D. To refine your choice, ask yourself, Why is this a
problem? Focus on topics in the current chapter,
because we generally select cases that illustrate
concepts in the current chapter.
Step 2: Identify causes of the problem by using ma-
terial from this chapter, which has been summarized in
the Organizing Framework and is shown in Figure 3.1.
Causes will tend to appear in either the Inputs box or
the Processes box.
A. Start by looking at the Organizing Framework
(Figure 3.1) and determine which person factors,
if any, are most likely causes of the defined
problem. For each cause, explain why this is a
cause of the problem. Asking why multiple times
is more likely to lead you to root causes of the
problem. For example, do particular individual
differences employees possess help explain the
WHAT ARE WE GOING TO
DO ABOUT IT?
To combat the churn, Amazon has structured its stock
options to vest (transfer to the employee as owner) on
an unusual schedule. Instead of vesting evenly over a
period of years, Amazon employee options vest at
5 percent in year one, 15 percent in year two, 40 per-
cent in year three, and 40 percent in year four. Employ-
ees who leave within one year of hire must repay part
of their signing bonus, and if within two years they
must repay their relocation package if any. Many ex-
perts question the effectiveness of such policies, how-
ever. Lindsey Thorne, manager at a Seattle recruiting
firm that places many former Amazon employees,
says, The potential payout of waiting for stock to vest
won't tie down unhappy employees who are ready to
jump ship."95 Still others question whether Amazon can
continue to innovate and lead in the marketplace if its
Individual Differences and Emotions CHAPTER 3
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PROBLEM-SOLVING APPLICATION CASE
Amazon to Competition: We Will Crush You!
Amazon to Employees: We Will Churn You!
Amazon is not just a surviving company of the 1990s
tech boom; it is now one of the largest and most suc-
cessful companies in the world in any industry. It has
leveraged its game-changing approach to selling
books to sell almost everything to almost everybody
almost anywhere. Today Amazon is a leader in all
things customer service, and it has achieved this lead-
ing position through groundbreaking technological in-
novation. Technological innovation also has made
Amazon one of the largest web services companies in
the world and much more than an formidable retailer.
All these legendary accomplishments are the result of
the commitment and contributions of thousands of ex-
tremely talented Amazonians. As you would certainly
expect, the standards for hiring are exceptionally high.
But what it takes to thrive and survive at the company
is even more challenging.
anonymous peer feedback (which employees are en-
couraged to use). Her boss said he couldn't defend
her in her performance review if her own coworkers
were critical of her. Can it get worse? Yes. Amazon also
uses a "rank and yank performance management sys-
tem. Employees are ranked by their managers, and
those near the bottom are terminated every year. This
leaves little room for taking a breath or backing off,
even if you have a miscarriage, take care of an ailing
parent, or receive treatment for cancer. There are sto-
ries of employees in all these predicaments who were
essentially told that their lives were incompatible with
working at Amazon. It is no wonder one former em-
ployee said, "Nearly every person I worked with, I saw
cry at their desk."89 Amazon disputes some of these
claims as simply those of disgruntled former employ-
ees. And because it has so many, even a small per-
centage is a big number.
IT'S NOT ALL SUNSHINE AND ROSES
While Amazon's accomplishments and future endeav-
ors are widely reported, until recently relatively little
was known about its approach to managing employ-
ees. But recent reports describe a punishing corpo-
rate environment: long hours, disparaging bosses,
high stress, no time or space to recover, all resulting in
uncommonly high employee turnover."86 Just how bad
is it? PayScale ranked Amazon 464th among the For-
tune 500, with median employee tenure of approxi-
mately one year! (A competing estimate puts average
tenure at 18 months.) 87
What pressures drive such high turnover? In a letter
to shareholders in 1997, founder and CEO Jeff Bezos
wrote: "You can work long, hard, or smart, but at
Amazon you can't choose two out of three."88 This sug-
gests that employees must always be on, be in the
game, and play it well. Amazonians experience many
of the common pressures of today's workplace-
80-plus-hour workweeks, 24/7 connectivity, no real
vacations or holidays (no surprise given that Amazon is
the largest retailer on the planet).
Amazon's "always on" culture is manifest in a num-
ber of chilling stories, such as that of an employee who
negotiated a 7 to 4:30 schedule with her boss after
having her first child. The problem was that her co-
workers didn't see her arrive early and crushed her in
WE CAN MEASURE THAT ...
AND THAT MATTERS
Another key contributor to the pressure cooker envi-
ronment is that everything is measured. For instance,
warehouse employees are monitored using sophisti-
cated systems to track how many boxes they pack per
hour. White-collar employees participate in routine
"business review meetings, for which they need to
prepare, read, and absorb 50 to 60 pages of reports
amounting to thousands of data points. During these
review meetings employees are often quizzed on par-
ticular numbers by their managers, and it is not uncom-
mon to hear managers say that responses are "stupid"
or tell workers to just stop it."90
To be sure, the company succeeds in large part be-
cause of the immense customer data it collects and
uses to select and sell its products. The plan is to use
data the same way to make performance management
an efficient and effective everyday process, rather
than a once-a-year event. However, many employees
describe the result as "purposeful-Darwinism"91 in
which every employee constantly competes with other
employees. Such relentless and pervasive competi-
tion, while well intended, has many undesirable conse-
quences. For instance, it is common for employees to
hoard ideas and talent, because sharing becomes a
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