Systems Thinking Assignment
Being employeed to one of the greatest organizations of the World, I have understood there has a been a significant issue that affects the organization’s achievement. Certain issues within the organization have been observed duirng the entire course of time. With the SCQUARE process, the situation, issues will be identified in the report. In the question section, the issue have been identified and their mitigation strategies have been demonstarted as well. With the stated interventions in the major part of the report, a detailed analysis on the concerned situation has been demonstarted.
I have been working for Aamzon for a few time. It was recognized that the company Amazon has high turnover rate issues and is considered as the major issues that the organization was facing. It was seen that this e-commerce company has recruited more than 3,50,000 staff for working in the warehouses. The company provides a range of products incorporating books, electronics, apparel, baby products, consumer cosmetics, health and personal care, gourmet food, groceries, kitchen items, and many more on the list. It was seen that presently the company acquired one of the largest positions as the price company of the US. It was seen that the company has become popular due to the development of the online company that provides its customers with an enormous amount of products. The company can ogre the product from Amazon from any corner of the world as it goes on expanding its growth. The company has emerged as an unbeatable e-commerce company. But there were certain issues also that are hindering the development of a perfect organizational culture in the organization. It’s vital shareholders are investors of Amazon, staff, directors, owners, customers, associates, third-party sellers, and the sources from which the firm acquires resources. But the record did not last for a few days or weeks (ASAD, 2020). This has indicated the issues of the high turnover rate in the firm. It was stated by many staff that they are looking for another job. It was identified that the staff working at the warehouse of Amazon in Michigan wanted to get rid of the company by shaving an opportunity to work somewhere else. It was argued by more than half a dozen recent and past staff of Amazon working different positions that specified the issues in the organization. It was understood that the Amazon Company has made a huge name in the e-commerce market. The demand for the company's deliveries has highly increased in the year 2020 as it was the time of the outbreak of pandemics all over the world. It was seen that most of the organizations have a turnover rate of 12% to 20%. But if the rate is below 10% it is considered favorable for the company. The greater churn rate forms the concern that the company will not be capable of replacing the employees as fast as they were quitting. It was found that the organization founder Jeff Bezos, who is one of the richest men in the world, has been pointed out many times for the work practices it employed. The situation of increasing turnover rate is due to the inappropriate working environment for the staff. It was seen that the shareholders responsible for the high turnover rate in Amazon are the founder of the company Jeff Bezos, institutional investors, senior manager, manager, and directors (Boewe and Schulten, 2017). In concern to this, it was regarded by David Niekerk the former vice president of Amazon that has formed the organization`s warehouse management process stating that Bezos's has the idea that staff are inherently very lazy and tend to form the company's policies. It was even regarded by senior analysts at Global data that Amazon methods implemented in the workforce are not sustainable.
Responsibility in turnover issues
No decision can be made without consulting the founder
Investors shared their opinion about the policies that are to be imposed
Responsible for controlling, managing, and directing the work
Look at the operation policies and guide the way to implement them.
Develop direct communication with the staff to make them work for acquiring organizational goal
It was understood that most of the staff working in the organization Amazon have stated the issues ongoing in the organization that has led to an increasing rate of turnover rate. The area of concern that has resulted in the formation of issues is the monotonous nature of the working environment in Amazon, the development of surveillance of the staff productivity, and lastly the continuous burnout. It was recognized that Amazon tends to burn out its staff by imposing a huge burden of work and this increases the rate of stress among workers working in the Amazon (Cai et al. 2020). This aspect is considered as the area of concern that has resulted in the increasing rate of employee turnover rate. It was seen that the increasing rate of employee’s turnover rate proved to be a huge loss for the company. The cost associated with the turnover rate is thus very high. It can be estimated that increasing the employee turnover rate can result in costing 1.5 to 2 times more the staff salary for every staff quitting the organization. The cost incurred for the hourly working staff is at an average of 1,500 dollars. But the staff working at technical positions in the organization then the cost exceeds to near about 100 to 150 percent of the salary given to the technical workers. This depicts the long-term issues that the organization can face if left unaddressed. It was seen that the impact laid by the increasing turnover rate incorporates the lower rate of productivity, exceeding cost for recruitment, avoidable time given in training the new recruited staff and decrease in the sales rate also. This indicates that the issue is enormous and needs to be solved as it can emerge as one of the biggest issues for Amazon (Schein, 2020). There is recognition of the issues in the warehouse of the company due to overlooking of the worker's convenience and this has made the turnover issues more complicated. It was seen that no doubt the Amazon Company continues to hire new staff but the requirement of staff for enhancing the working condition has also exceeded. It was seen that Amazon has put too much pressure by exceeding the workload. The employees undertaking the role of pickers are regarded for picking up near about 4000 products in a shift. In this situation, the staff gets stuck in the workplace for nearly 10 hours with two 30 minutes breaks. Working the same thing over and over again makes the staff fed up with the work and leads them to leave the company. It was also witnessed that due to the increasing rate of work particularly on prime day and other offers the sale of the company is more but this leads to an increase in the rate of injuries in workers (Camgoz and Ekmekci, 2021). This indicates that the shareholders involved in managing the staff and working to increase the sales are giving much concern to the sale and customers and not to their staff. This was the reason that staff wanted to get rid of the company. In concern to elaborate the issues, a rich picture has been developed below to depict the situation and concern.
It was understood that the increasing rate of turnover has created a lot of issues for the Amazon Company. The issue was not only the impact the organization must also create. In order to develop the attention toward the stated concern, a strong question has been developed that depicts the underlying issues. The question has been raised as the turnover rate of employees in Amazon is very high and thus the company will need to ensure undertaking appropriate steps that enable it to mitigate the issues by laying significant concerns (Chon et al. 2021). It will also help to interlink the concern and the way the concern can be dealt with. In regard to this the question that is developed specifying the concern is:
- What leads to the increasing employee turnover rate in Amazon and suggest the steps by which the issues can be mitigated?
It was understood that the issue of the increasing turnover rate is deeply embedded in the organizational culture adopted by Amazon. This is particularly due to the policies adopted by the major shareholder of the company. This has indicated that in the way of increasing the sales the company has overlooked its staff and has developed inappropriate connections with its staff. It was seen that even they do not bother with the staff safety to meet the target of delivering a huge amount of product every day to its customers. In the process of this quick work, it was seen that many of its staff got injured. This ongoing attitude of the organization toward its staff has enabled them to protest or quit working in the firm in a few weeks itself. In concern to this, it becomes vital to undertake the important intervention that enables us to mitigate the issues (Covella et al. 2017). In order to mitigate the issues of increasing the rate of turnover of employees, it is vital to recognize the reason that is resulting in the development of the issues. The identification of the issues that have led to an increasing rate of staff turnover will help to identify, analyze and implement the proper implication for addressing the area of concern. It was seen that the Amazon Company was facing a high turnover rate due to the development of a monotonous environment in the workplace. This has resulted in the formation of exceeding stress among the workers. The development of the surveillance to record the staff productivity was making staff frustrated and exceeding the level of stress among them to ensure that higher productivity rate can be recorded in the surveillance process. In regard to this, the staff gets completely exhausted to address the issues. Even rapid burnout is another issue in which the staff is burdened with ample workload leading to distress and inappropriate health. This indicated that the company does not focus on the health and wellbeing of staff. These issues can be managed by developing a strong connection with the staff. This can be only possible if the shareholder responsible for increasing the turnover rate lays concern to the issue going on in the organization and takes necessary steps for mitigating it. It was understood that it is the internal factors that enable any staff to leave or stay in the firm (Sainju et al. 2021). This indicated that it is vital to transform the internal factors of the organization. In order to manage the stated concern, it will be vital to reduce the unwanted rate of staff turnover by enabling the staff that is acquired by them in the form of advancement that tends to break or break the job. Job perks incorporating flexible working hours or even greater than the normal advancement might help to keep staff in the job or else their world has been left. It was seen that the company will tend to revisit the policies in terms of working horses and other aspects that are leading to the issues (Dwesini, 2019). In concern to this it was understood that the intervention that needs to be acquired by Amazon for addressing t corner are:
- Acquiring the right people: It is vital to understand that Amazon hires people in bulk and then all the staff tends to leave the organization one after the other. This is vital for the company to hire the right people as it will help the company to not treat staff strictly for their underperformance and will help to ensure the development of a productive yet healthy working culture.
- Keeping compensation and advancement current: Amazon needs to pay a fair salary to its staff to ensure that the employee can see better career opportunities in the organization. This will also help the firm to ensure that the organization is paying fairly for its hard work (Skelton, 2017). Then the work will not be considered as laid. It will be helpful for the firm to ensure that for every additional work they provide separate money to help them keep motivating in meeting the goals of the firm. It will ensure that the staff manages to work in a pressured environment in case of special occasions like prime day and others.
- Encouraging generosity and gratitude: It was regarded that the staff requires the presence of a healthy environment to ensure that they cannot lose control over their mind. It was seen that Amazon was not paying any attention to developing a healthy relationship between the management and the staff. It is vital to develop a sense of belonging that enables the staff to feel connected with the organization (Hall, 2019). It was seen that the lack of presence of connection of top-level managers with the staff lead to increasing turnover rate as they do not feel connected and it hampers the organization's working culture. It is vital to motivate pro-social behavior among Amazon staff. This will help them to feel connected. Thus the staff will feel healthier and will not fly away from the organization. The development of the connection with staff will ensure that the staff overlook some mistakes of the organization and do not get frustrated fast.
- Recognizing and rewarding staff: It was seen that the employee turnover rate in Amazon is very high. This can be managed by providing the skilled staff with a reward and bonus. This will help them to work with more dedication. It was seen that in the Amazon the staff worked for 10 hours long doing the same work and in this situation, it becomes vital to keep them motivated by providing them with significant incentives and bonuses to make them feel a little relaxed. This will help to understand the organization is paying them right for their work and not taking advancement over them (Haney, 2018). Thus it is vital to show the staff that they are valued and cared for by providing them with actual-time recognition that celebrates the success of the staff and their hard work.
- Offering flexibility: In present situations, staff requires a flexible life that enables them to undertake a significant work balance. They have a direct impact on retention. It was identified that about 76% of managers and 80% of staff resembled the flexible work arrangement that had a positive impact on the retention rate (Muzaffar and Javed, 2021). This is recognized by the most organization. This indicated that it is vital for Amazon to offer its staff flexibility in terms of working hours and location. If the firm fails to provide flexibility, they can easily leave the firm for a better opportunity somewhere else.
- Prioritizing staff happiness: The firm needs to ensure that an organization like Amazon generally has a strong strategy in increasing the expansion of its sales and overlooked the requirement of its staff. In this situation, it will be vital for the staff to acquire their feedback. This will help the firm to recognize the current issues that are being faced by the staff and this will also help to ensure that Amazon takes necessary action for resolving them.
- Demonstrating and cultivating respect: It can be regarded that respect is one of the most vital elements in the organization that have a considerable impact on the employee turnover rate. It was seen that Amazon will need to form and nurture respect in the workplace as it will help to manage the increasing turnover rate.
It was regarded that the affinity diagram that has been developed below is conducted by utilizing the idea generated at the time of the brainstorming sessions. In concern to this, in this work, this tool has been utilized for analyzing the ongoing issues in the organization Amazon. It was seen that the issues of the higher employee turnover rate are identified as the prime issues that are being faced by the organization. This tool has helped to brainstorm the organization's issues and recognize its main cause to ensure that the significant steps can be selected that enable to fit significantly to mitigate issues. This diagram indicates some different key themes and variables that contributed to the occurrence of the higher turnover rate in Amazon (Hinderks et al. 2017). These issues are categorized into three key themes like physical resources, human resources, and inefficient methods, and then these key themes are further segmented into certain categories. It was seen that the issues encountered under the physical resources we like to small space of the warehouses, inappropriate monitoring process, lack of space for the products, stuffy, bugs in the software, and even hardware issues. The issues identified in terms of the human resource of Amazon are that the newly recruited staff does not have significant skills to manage the operation without any training. The work is becoming monotonous to the staff. It was seen that there was no shift in the work and this has created issues in terms of getting bored from the work and cannot take the pressure of working, in the same manner, every day. It was understood that the turnover rate of the staff is very high. It was seen that the employees are not working with complete attention. Even there was no on boarding training that can develop the skills. It was seen that the associated issues have resulted in the increasing rate of turnover. Even the process was not significant. It was seen that the working structure was inappropriate (Kane, 2018). Among all the stated issues if ranked the top three major issues that resulted in the increasing rate of the turnover rate in Amazon are firstly the monotonous natures of the working environment in Amazon, secondly the development of surveillance of the staff productivity, and lastly the continuous burnout.
After developing the affinity diagram it can be stated that the answer developed in the section above is significant enough to justify the work, it was seen that Amazon was facing different issues that have also been highlighted in the diagram. The issues have been elaborated in a significant way in the answer section and this elaboration of the issues has helped to specify the reason for which the suggested intervention will be helpful in addressing the issues (Lee et al. 2021). It was seen that the staff were quitting working in Amazon to develop an inappropriate working culture that is not concerned for the welfare of the employees. In consideration of this, the suggested recommendation for the concern is appropriate. It will enable Amazon to resolve the issues. It will help to ensure that not a single cause resulting in the development of an increasing turnover rate can be left unresolved. The most significant solution is taking the feedback of staff. It will help Amazon to ensure that the issues that are being faced by the staff can be recognized by the HR of the company and necessary steps can be taken. The answer stated is logical as it was suggested by basing on the issues that were going on in the firm. In concern to this, it was seen that it is vital for the shareholders involved in the turnover rate by taking inappropriate policies to focus on making the firm flexible (Lee and Kim, 2020). This will help to mitigate the issues of working time and ensure that it involves a complete balance. It was recognized that all the suggested recommendations in the answer will ensure to make staff feel more secure and valued in the organization and this will automatically help to overcome the turnover rate of employees.
In order to implement the suggested recommendation, it is vital to make certain changes in the organization to manage the issues of employee’s turnover rate. In concern to this the steps to be acquired for implementing the suggested recommendation are:
- It is vital to ensure that the important shareholders and top-level authority of Amazon try to consider employees as valuable assets.
- It is vital for the top-level authorities to firstly conduct a survey of the staff by conducting their feedback and recognizing the issues.
- After recognizing the issues it will be vital to revisit the policies and make modifications in terms of issues. This will require modification in pay scale by exceeding it after every certain fixed period (Li et al. 2021). It will also require modifying the organizational culture and starting valuing staff. This will help to manage the situation. All this policy will need to be improved fast
- After improving the policies it will be vital to ensure that the policies can be implemented fast and if any training or further changes is required to be made then it will be involved within the ongoing changes itself.
- Lastly, it will be vital to hold communication with the staff to ensure that they can understand that the policies are being changed for their benefit and they support them.
- After this, the change policies will be implemented and any resources if required will be stocked from before only.
All the stated interventions are relevant as they will help to manage the issues of turnover rate and will boost the organizational culture. This development of the organizational culture will also support Amazon to secure long-term profit as it is something that cannot be copied by the company (Morgan, 2019). Then the stated interventions are appropriate and validate as it is formed by monitoring the overall issues ongoing in Amazon. This has been formed by researching the issues in-depth and the suggestion has been developed. Thus this depicts that the proposed interventions are relevant and even valid.
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