Amazon as an Employer - HBR case

1. Amazon as an
Employer
Group Members
Nikunj Jha - 17030121151
Rimjhim Shrivastava - 17030121055
Nitika Dubey - 17030121200
Saloni Jajoo - 17030121149
Hrishikesh Chavan - 17030121137

2. • Amazon is the biggest internet-based retailer
in the United States and has frequently been
featured in top magazines.
• However, in 2015 The New York Times
published an article focussing on the
unconventional work culture of Amazon, where
the employees are expected to give their all
and work 80 hours a week.
• According to Amazon, this always leads to
innovation, but it often creates a stressful
environment for the employees.
Summary

3. Situation
• Employees had two opinions: some found it an opportunity to grow
while others found it hard to survive.
Cause
• That causes various symptoms related to
physiology, psychology, or behaviour such
as illness, anxiety, lower job satisfaction,
job performance, aggressive nature.
Effect
• That led to higher employee turnover.
• Also As Amazon was on the verge of expansion,
the question arose that how Amazon would be
able to cope with the article published by The
New York Times, which damaged the image of
Amazon.

4. 1. How does the practice of keeping employees on the
edge impact business in the short and long run?
Short Term Impact Long Term Impact
• Positive Impact -
⚬ Topline Growth (Rapid Expansion)
⚬ Exponential Rise in stock prices
⚬ Controlled Spending
⚬ Retention of star performers
• Negative impact -
⚬ Employee fatigue
⚬ Anxious and Stressed employees
⚬ Might end up quitting, collapsing, or
getting terminated
• Negative impact -
⚬ High Turnover
￭ Workforce shortage
￭ Hamper growth due to vacancies
⚬ Higher employee age gaps
⚬ Negative Impact on brand image
￭ Depiction of poor culture
￭ Criticism

5. • Business success is dependent on employee
satisfaction and commitment towards the
company, not on a hectic working environment,
poor care of people’s management and
stressful cultural aspects
• The reason behind the high employee turnover
at Amazon was their rigorous work culture that
exerted a lot of pressure on individuals.
• Happier employees are more productive and
contribute to better business performance
• Being compassionate makes the employees
more loyal and committed to the organization.
• Boost coworkers' productivity levels
• Motivated employees will achieve for both the
team and the organization.
• Increase level of job engagement
2. Does the people management strategy of care and compassion
make business sense?

6. 3. Are employees at Amazon satisfied and thriving or
surviving?
The employees at Amazon were just surviving because:
• Toxic work environment - encoraging employees to be
ruthlessly crictical and sabotage each other
• Unhealthy and stressful work culture
• Promoting workaholicism - working long hours and
overtime
• Fear of termination or being laid off
• No gender diversity in leadership positions

7. 4. Is Amazon's employer brand, as reported by the New York
Times', sustainable? Why or why not?
Though Amazon is considered to be one of the most
admired companies to work for, its employer brand,
according to the NYT and as perceived by those outside
the organization, was NOT SUSTAINABLE:
• The company was succeeding at the expense of its
employees, i.e. Stressful work environment
• "Quit, collapse or terminate" mentality
• Scrutinous PMS
• The constant fear of getting replaced
• ZERO perks and benefits