As Amazon expands into China, management has noticed the need for possible organization structure and design change. In this paper, one will learn about the existing structure and design, the challenges of the existing design, and changes in strategy for the organization. Additionally, one will learn recommended changes to the current organizational structure to align with the strategies provided previously and the changes to the organizational structure of Amazon’s Human Resource department. Lastly, one will read an explanation of how the recommendations will help the organization remain effective in its changing environment.
Existing Structure of the Company Amazons existing structure is Global. Amazon is a large company based out of Seattle, Washington and is known for a one stop shop kind of website. Innovation is always happening at Amazon as they are always looking ahead to the future. Amazon current structure is functional. We have the CEO and then the departments on the organizational hierarchy. By Bezos having a functional structure, it allowed the company to differentiate as it grew. Competitors try to keep up with Amazon, but Amazon is so far advanced with having their products and services vertically integrated. Because of this Amazons structure is dynamic and often changes with the environment. Financially, Amazon operates on a thin margin, and that is the way chief executive officer Jess Bezos likes it as he sees it as a competitive advantage (Aley & Stone, 2013, para 3.).
Existing Organization Design
The existing organizational design of Amazon includes several people and departments. Amazon has departments that include: Fulfillment centers, call centers, human resources, finance and IT. Each department has functions that consist of production, managerial, adaptive and maintenance (Jones, 2012, p. 96). Amazon relies heavily on physical resources. They have lots of machinery to move product on the conveyor belts throughout the
References: Aley, J., & Stone, B. (2013, January). Amazon 's Jeff Bezos doesn 't care about profit margins. Bloomberg Business. Retrieved from http://www.bloomberg.com/bw/articles/2013-01-08/amazons-jeff-bezos-doesnt-care-about-profit-margins Bell, P. C. (2015). Sustaining an analytics advantage. Retrieved from ProQuest. Jones, G. R. (2010). Organizational theory, design, and change (6th ed.). Upper Saddle River, New Jersey: Pearson Prentice Hall. Lerman, R. (2015, January). Amazon 's headcount tops 150,000 after adding nearly 40,000 employees in 2014. Business Journal. Retrieved from http://www.bizjournals.com/seattle/blog/techflash/2015/01/amazons-headcount-tops-150-000-after-adding.html