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The human resource of an organisation needs to be managed properly because it will directly affect the sustainable performance of the company. The HR is associated with how to properly measure every area of human resource for developing the functions of the organisation for creating more value from the activities of this resource. For understanding this attribution of human resource Management, the organisation Amazon will be evaluated under this report. The organisation is hiring worldwide and more than 245200 employees all over the world. By analysing Amazon under this report, the proper knowledge about the management of human resource for improving the performance and profitability of this organisation can be understood. The major focus will be given at organisational design, the motivational process for employees, use of contemporary knowledge and Technology and change in management structure.

Task 1- LO1 & LO2

P1 The importance of organizational design theory in the context of organizational structure and fulfilling organizational strategy

For structuring and operating the members of the company, Amazon uses the way of organisational design. The organisational design is considered as both a plan and a process.

There is an interrelationship between organisational structure and strategic aim with the organisational design. Like every organisation, Amazon has its own strategic aims, which include the large objectives of this E-Commerce organisation for increasing its market share and productivity rate. Developing the statistical position of the business is the major area which is focused by the strategic objectives (Armstrong and Taylor, 2014). The organisational design is being restructured depending on the changes of strategic aim. The organisation structure represents the hierarchy of Management where the organisation subdivided the major area depending on various responsibilities and functions.

The organisational design model- The model developed by Weber is an example of the classic organisational design model. Still, now famous organisations like Amazon are using this model for preparing the organisational design. This model mainly focuses on formal rules and procedures for structuring the organisational hierarchy. This hierarchy mainly attached to the organisation and its different members (Bolman and Deal, 2017).

Designing organisations to meet strategic aims-There is a very important connection between the organisational structures in the development of the Sustainable performance of the company. This is because the organisation structure focuses on various activities like supervision, task allocation, and coordination for the achievement of organisational aims. The organisation structure also develops by concentrating on providing care, efficient, innovative and flexible process for the employees which will help them in creating a sustainable competitive advantage (Carayannis et al. 2015). The formalized pattern of the organisational structure shows an introduction between the company’s task, people and Technology. 

Contemporary OD-There is three different type of organisational structure mainly used by large organisations for achieving strategic objectives. Those are functional structure, divisional structure and matrix structure (Bratton and Gold, 2017).

As per the four basic principles of Amazon, it is using the matrix structure for focusing on both the functions and product simultaneously. The use of matrix structure does not only help in accomplishing the work by using the employees but also increases the advantages by focusing on the functions. The advantage of using the Matrix structure is the effective use of resources (Leih et al. 2014). It is also beneficial for both horizontal and vertical communication process. Besides that, there are both types of focus in the organisational operations and employees which help in reducing the difficulties of the new organisational environment. Managing the resources is easier and the cost can be easily measured by focusing on every single project objectives. The utilisation of resources can be handled more flexible in this process (Burton et al. 2015). There are also disadvantages using Matrix structure because it is difficult to manage out of its complexity.

The impact of the external business environment- The external business environment of the business of Amazon is mainly affected by the competitors in the market and the legal and political situation. Besides that, as an E-Commerce business with technological changes can also create a huge impact on the organisational design of Amazon. Therefore, the organisational hierarchy design is redesigned by the Human Resource Department depending on external business environment factors.

An agile organisation has some specific characteristics for developing a strong human resource. These characteristics include work-life balance and consistent delivery which is directly related to the organisational goals (Camaj, 2018). The sustainable and successful business process for developing customer value is possible in this type of business, where the flexibility of work is possible for the employees. It is directly connected with collaborative and smart decisions of the human resource manager.



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