Alibaba Group is the world's outstanding business-to-business e-commerce service company, which provides an efficient online trading platform for buyers and suppliers all over the world. It is China's largest e-commerce group which was founded by Jack Ma in 1999, and has developed into seven affiliated groups, namely Alibaba International Business Operations, Alibaba Small Business Operations, Taobao Marketplace, Tmall.com, Juhuasuan, e-Tao and Alibaba Cloud Computing (News, 2012). Besides, Alibaba Group has more than 24,000 employees in 70 cities which scattered in China, India, Japan, Korea, the United Kingdom and the United States (News, 2012).
This report will focus on analysis for Alibaba Group's human resource management, in order to reply the demand of its future developments.
2. Background to the case study organization
Alibaba Group has taken a hit as a result that a part of its employees were guilty of online fraudulent activities and irresponsible short-term profit. The announcement of the company showed that nearly 100 employees including sales staffs, manager and supervisor, had conspired to the fraud by deliberately helping fake suppliers in China to register with avoiding the company scrutiny and allowing them to defraud oversea buyers on the Alibaba’s international website (Nytimes, 2011). Surprisingly, these allegedly fraudulent online shops account for 1.1% and 0.8% of Alibaba’s ‘Gold Suppliers’ signed up during 2009 and 2010 respectively, which has impacted on the company value and produced a shock to mass beliefs (Economist, 2012). Thirteen people were sentenced ranging from eight months to three years in jail after conspiring with suppliers to gain illegally around RMB 500,000 yuan in this online fraud (Nytimes, 2011).
3. Outline of People Management Issues
This issue related to the credibility of Alibaba is directly due to the internal defects in management, the lack of inside supervision and few controls of the
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