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Management Principle Subtitle

The document discusses management principles and Amazon's organizational structure and leadership principles. Specifically: 1) It outlines the key management functions of leading, controlling, and discusses how leadership is needed to coordinate complex organizations. 2) It describes Amazon's leadership principles which are focused on customer obsession, ownership, innovation, accountability, learning and developing talent. 3) Amazon has a hierarchical structure but remains flexible. It uses small, autonomous teams organized by the "two pizza rule" to spur innovation. Stability in top leadership also contributes to its success. 4) The "two pizza rule" helps engagement and innovation by empowering smaller teams with autonomy to make faster decisions. It spreads innovation and creativity throughout the
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0% found this document useful (0 votes)
99 views15 pages

Management Principle Subtitle

The document discusses management principles and Amazon's organizational structure and leadership principles. Specifically: 1) It outlines the key management functions of leading, controlling, and discusses how leadership is needed to coordinate complex organizations. 2) It describes Amazon's leadership principles which are focused on customer obsession, ownership, innovation, accountability, learning and developing talent. 3) Amazon has a hierarchical structure but remains flexible. It uses small, autonomous teams organized by the "two pizza rule" to spur innovation. Stability in top leadership also contributes to its success. 4) The "two pizza rule" helps engagement and innovation by empowering smaller teams with autonomy to make faster decisions. It spreads innovation and creativity throughout the
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Management principle(subtitle)

1)
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lc_framework.htm)

Leading

Organizations as they grow, develop complex structures with an increasing need for
co-ordination and control. To cope and manage such situations, leadership is
necessary to influence people to cooperate towards a common goal and create a
situation for collective response.
Leading entails directing, influencing, and motivating employees to perform essential
tasks. It also involves the social and informal sources of influence to inspire others.
Effective managers lead subordinates through motivation to progressively attain
organizational objectives.
Personality research and study of job attitudes in Behavioral Science provides
important insight on the need for coordination and control. Thus it becomes
important for leadership to create harmony among individual efforts to collectively
work towards organizational goals.

Controlling

Managers at all levels engage in the managerial function of controlling to some degree. Two
traditional control techniques are budget and performance audits. An audit involves a
physical examination and verification of the organization’s records and supporting
documents. A budget audit provides information about where the organization is with
respect to procedures followed for financial planning and control, whereas a performance
audit might try to determine whether the figures reported are a reflection of actual
performance.

Controlling involves measuring performance against goals and plans, and helping correct
deviations from standards. As a matter of fact, controlling facilitates the accomplishment of
plans by ensuring that performance does not deviate from standards.

Controlling is not just limited to organization’s financial state, but also spans across areas
like operations, compliance with company policies and other regulatory policies, including
many other activities within the organization.
The management functions thus most effectively cover the broad scope of a manager’s
duties and responsibilities. Though the nature and complexities faced by businesses have
undergone a vast change over the years, the functions of management remain the same.

2) https://www.aboutamazon.com/about-us/leadership-principles

He also is a model business


leader and he has
changed the way big
companies operate.
Throughout his
We hold ourselves and each other accountable for demonstrating the Leadership Principles
through our actions every day. Our Leadership Principles describe how Amazon does
business, how leaders lead, and how we keep the customer at the center of our decisions. Our
unique Amazon culture, described by our Leadership Principles, helps us relentlessly pursue
our mission of being Earth’s most customer-centric company, best employer, and safest
place to work.

Customer Obsession.

Leaders start with the customer and work backwards. They work vigorously to earn and keep
customer trust. Although leaders pay attention to competitors, they obsess over customers.

Ownership
Leaders are owners. They think long term and don’t sacrifice long-term value for short-term
results. They act on behalf of the entire company, beyond just their own team. They never say
“that’s not my job.”

Invent and Simplify

Leaders expect and require innovation and invention from their teams and always find ways
to simplify. They are externally aware, look for new ideas from everywhere, and are not
limited by “not invented here.” As we do new things, we accept that we may be
misunderstood for long periods of time.

Are Right, A Lot

Leaders are right a lot. They have strong judgment and good instincts. They seek diverse
perspectives and work to disconfirm their beliefs.

Learn and Be Curious

Leaders are never done learning and always seek to improve themselves. They are curious
about new possibilities and act to explore them.

Hire and Develop the Best

Leaders raise the performance bar with every hire and promotion. They recognize exceptional
talent, and willingly move them throughout the organization. Leaders develop leaders and
take seriously their role in coaching others. We work on behalf of our people to invent
mechanisms for development like Career Choice.

Insist on the Highest Standards

Leaders have relentlessly high standards—many people may think these standards are
unreasonably high. Leaders are continually raising the bar and drive their teams to deliver
high-quality products, services, and processes. Leaders ensure that defects do not get sent
down the line and that problems are fixed so they stay fixed.
Think Big

Thinking small is a self-fulfilling prophecy. Leaders create and communicate a bold direction
that inspires results. They think differently and look around corners for ways to serve
customers.

Bias for Action

Speed matters in business. Many decisions and actions are reversible and do not need
extensive study. We value calculated risk taking.

Frugality

Accomplish more with less. Constraints breed resourcefulness, self-sufficiency and invention.
There are no extra points for growing headcount, budget size, or fixed expense.

Earn Trust

Leaders listen attentively, speak candidly, and treat others respectfully. They are vocally self-
critical, even when doing so is awkward or embarrassing. Leaders do not believe their or their
team’s body odor smells of perfume. They benchmark themselves and their teams against the
best.

Dive Deep

Leaders operate at all levels, stay connected to the details, audit frequently, and are skeptical
when metrics and anecdote differ. No task is beneath them.

Have Backbone; Disagree and Commit

Leaders are obligated to respectfully challenge decisions when they disagree, even when
doing so is uncomfortable or exhausting. Leaders have conviction and are tenacious. They do
not compromise for the sake of social cohesion. Once a decision is determined, they commit
wholly.
Deliver Results

Leaders focus on the key inputs for their business and deliver them with the right quality and
in a timely fashion. Despite setbacks, they rise to the occasion and never settle.

Strive to be Earth’s Best Employer

Leaders work every day to create a safer, more productive, higher performing, more diverse,
and more just work environment. They lead with empathy, have fun at work, and make it
easy for others to have fun. Leaders ask themselves: Are my fellow employees growing? Are
they empowered? Are they ready for what’s next? Leaders have a vision for and commitment
to their employees’ personal success, whether that be at Amazon or elsewhere.

Success and Scale Bring Broad Responsibility

We started in a garage, but we’re not there anymore. We are big, we impact the world, and
we are far from perfect. We must be humble and thoughtful about even the secondary effects
of our actions. Our local communities, planet, and future generations need us to be better
every day. We must begin each day with a determination to make better, do better, and be
better for our customers, our employees, our partners, and the world at large. And we must
end every day knowing we can do even more tomorrow. Leaders create more than they
consume and always leave things better than how they found them.

3) https://research-methodology.net/amazon-organizational-structure-2-2/

Amazon organizational structure can be classified as hierarchical. Senior management team


include three CEOs and three senior vice presidents responsible for various vital aspects of the
business reporting directly to Amazon CEO Jeff Bezos.

Amazon organizational structure has the following three key features:

1. Hierarchical corporate structure. Hierarchical structure at Amazon has developed due to the
immense size of the business. The largest internet retailer in the world by revenue employs more
than 647,00 people worldwide.[1]

2. Flexibility of the business. It is important to note that despite its large size, unlike many other
companies with hierarchical organizational structure, Amazon remains highly flexible to adapt to
frequent changes in the external marketplace. Moreover, the online retail giant leads changes in
external business environment, it has caused disruptive innovation in e-commerce and currently
it is about to cause a disruptive innovation in global logistics industry. This is mainly due to
visionary and efficient leadership by Amazon founder and CEO Jeff Bezos.
Amazon organizational structure integrates many small teams that deal with various aspects of
the business. Amazon founder and CEO Jeff Bezos is credited with the introduction of ‘two pizza
rule”. According to this rule, meetings should be held in teams small enough that could be all fed
with only two pizzas.

3. Stability in the top management. Stability is one of the key features of Amazon. Specifically,
the largest internet company by revenue in the experiences “very little turnover among its most
important power players, with many of them having been at the company for years, if not
decades.”[2]

4) https://economictimes.indiatimes.com/magazines/panache/3-reasons-why-jeff-bezoss-2-pizza-
rule-can-help-a-company-succeed/articleshow/79572446.cms

Employees are more engaged


Smaller teams are often more engaged and feel a greater sense of autonomy. With fewer
levels of management to interact with, they are able to make decisions faster. A recent Gallup
report showed that companies in the U.S with fewer than 10 employees scored 42 per cent
engagement levels while the average engagement level for bigger companies was below 30
per cent.

More_innovative
In a letter to shareholders in 2013, Bezos highlighted how having smaller, decentralised
teams helped spur creativity and innovation. “This decentralised distribution of invention
throughout the company – not limited to the company’s senior leaders – is the only way to
get robust, high-throughput innovation,” he wrote.

Prevents_data_duplication
Paytm’s Dhody believes a leaner team can also prevent data duplication since each team is in
charge of a particular business domain. “They are the single owners of that domain,” he told
Business Insider. “Nobody else in the organisation owns that domain, including the data or
the services that power it. In my mind, it one of the most efficient organisational designs for
structuring teams because it helps agility and prevents data duplication. You don’t have two
teams which are gathering the same type of data or servicing the same kind of things.”

But it is important, he cautioned, to have a common data infrastructure and to have data
flowing between the various teams. Otherwise, it'll lead to a lot of wasteful expenditure for
the company in the long run.

5) https://online.stmary.edu/mba/resources/8-best-practices-in-business-management

1. Engage Workers
Alienated workers do not care about performing their jobs. All they care about is getting a
paycheck and advancing their own interests. The first thing a manager needs to do is find out
how to make his employees care about the company's vision. Engaged workers are not only more
enthusiastic and productive; they also become less passive, taking responsibility for their
performance and attracting fresh talent to the company.

2. Reward Effort
No one likes their work to go unrecognized. Recognition of effort and achievement – thanks for a
job well done – makes employees feel valued. It seems like an obvious point, but often business
management training overlooks the positive impact of appreciation. Some managers might even
feel that being too "touchy-feely" undermines their authority. On the contrary, reward motivates
people to achieve more and helps to build company loyalty.

3. Be Vulnerable
Vulnerability is a recurring theme in Lencioni's business management articles. He believes that
managers need to stop being anonymous figures in the lives of junior employees and that getting
to know employees is one of the best ways for management to engage their workers. He also
sees vulnerability as crucial in team dynamics; without being able to speak openly and put one's
ideas on the spot, it is impossible for teams to build trust.

4. Stay Committed
When team members don't trust each other, they devote a lot of time to avoiding conflict rather
than airing their real opinions and working to find common ground. A state of perpetual ambiguity
ensues, in which clear goals and strategies fail to emerge out of group discussion. Lencioni
labels this lack of commitment the "third dysfunction" of team dynamics. It can lead to
poor decision making and stifle productivity. Staying committed to the team's initiative means
creating an atmosphere where conflict is welcomed, not feared, because differing perspectives
help to shape a clear goal.

5. Seek Clarity
A problem with many companies is a lack of alignment among managers, who either stop
working to fulfill the company's vision or never understood what that vision was. Lencioni points
out that company's need to focus on alignment of core principles by asking the following six
questions:
 Why do we exist?
 How do we behave?
 What do we do?
 How will we succeed?
 What is most important, right now?
 Who must do what?
Without leaders developing – and sharing – a clear sense of the company's vision, its values, its
strategic goals, and its delegation of responsibilities, the best business management education in
the world won't matter, because the company will lack purpose and direction.
6. Create Cultural Cohesiveness
Here, "culture" doesn't refer to socioeconomic status or ethnicity. Rather, it means a sense of
shared values that, with the right level of engagement, will lead to the development of productive
and efficient outcomes. It is a good business management practice to make new hires based on
an alignment with the company's core values and its vision, because workers with shared values
make good team members. Diversity of race, gender, and socioeconomic status is a positive
thing because it increases collective insight. But, diversity in values can lead to a company's
downfall.

7. Focus Team Effort


Sometimes managers invest the bulk of their energy on making sure that the team gets off on the
right foot, hosting retreats to boost solidarity and being attentive to ideas as they first come out.
It's essential to focus on ongoing team dynamics, however, to make sure that members don't get
distracted by individual activities that lead them off track. Consistent reassessment and
realignment of team goals is the way to achieve the best results.

8. Hold Regular Meetings


In an overview of his book, The Advantage, Lencioni has this to say about the importance of
meetings to a company's success: "No action, activity or process is more central to creating a
healthy organization than the meeting." He suggests that, in order to be fully successful,
management should do the following:
 Create separate meetings for tactical and strategic business planning.
 Assess a tactical agenda only after the team has reviewed its progress against goals.
 Make sure there is enough time allocated for the clarification, debate, and resolution of major
issues.
 Meet quarterly outside the office to review what is happening in the industry, the company, and
the team.
Meetings provide the organization with a regular forum on core values, allowing members to
realign principles and give perspective on business practices.

In order to succeed in a competitive field like business management, you need to stay true to
yourself before you can hope to have a meaningful impact on the organization you represent.
Ultimately, the best practices are ones that focus on your developing authentic connections
among yourself, the junior employees, and the company as a whole.

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df

Our relationship with employees is a very different example. We have processes they follow and
standards they meet. We require training and various certifications. Employees have to show up at
appointed times. Our interactions with employees are many, and they’re fine-grained. It’s not just
about the pay and the benefits. It’s about all the other detailed aspects of the relationship too.

He also is a model business


leader and he has
changed the way big
companies operate.
Throughout his life, he builds
Wal-Mart from
a store into one of the largest
companies in America. Wal-
Mart leadership has
attempted to incorporate the
values of its founder Sam
Walton into the organizational
culture to increase employee
morale and have a positive
impact on profitability
He also is a model business
leader and he has
changed the way big
companies operate.
Throughout his life, he builds
Wal-Mart from
a store into one of the largest
companies in America. Wal-
Mart leadership has
attempted to incorporate the
values of its founder Sam
Walton into the organizational
culture to increase employee
morale and have a positive
impact on profitability
He also is a model business
leader and he has
changed the way big
companies operate.
Throughout his life, he builds
Wal-Mart from
a store into one of the largest
companies in America. Wal-
Mart leadership has
attempted to incorporate the
values of its founder Sam
Walton into the organizational
culture to increase employee
morale and have a positive
impact on profitability
He also is a model business
leader and he has
changed the way big
companies operate.
Throughout his life, he builds
Wal-Mart from
a store into one of the largest
companies in America. Wal-
Mart leadership has
attempted to incorporate the
values of its founder Sam
Walton into the organizational
culture to increase employee
morale and have a positive
impact on profitability
He also is a model business
leader and he has
changed the way big
companies operate.
Throughout his life, he builds
Wal-Mart from
a store into one of the largest
companies in America. Wal-
Mart leadership has
attempted to incorporate the
values of its founder Sam
Walton into the organizational
culture to increase employee
morale and have a positive
impact on profitability
He also is a model business
leader and he has
changed the way big
companies operate.
Throughout his life, he builds
Wal-Mart from
a store into one of the largest
companies in America. Wal-
Mart leadership has
attempted to incorporate the
values of its founder Sam
Walton into the organizational
culture to increase employee
morale and have a positive
impact on profitability
He also is a model business
leader and he has
changed the way big
companies operate.
Throughout his

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