Impact of HR Best Practices on Employee Performance

Hi,

Attached is the survey results with the findings on the efficacy of Amazon HR practices to employee performance.

Introduction

Amazon was created as an online bookstore in 1995 by Jeff Bezos; however, it has rapidly evolved into one of the world’s biggest e-commerce companies, with over 220,000 employees from all over the globe. The company’s market value is about $900 billion, making it the second-largest company by market value. The company is run based on efficient business management, and therefore its tremendous business success is due to its unique business model and employee management.  Based on several studies, Amazon can be viewed as a two-sided coin. On one side, the firm is very successful and empowers its employees to do amazing things. On the other side, the company is operated on a work culture that puts it relatively competitive and very demanding. The best thing about Amazon is transparency, making it a conducive place to work for young and ambitious individuals who aspire to change the world.

However, cooperation has also received a lot of criticism because of its harsh way of managing its employees. Compared to other online companies such as Apple and Google, the company workers are less satisfied with their jobs. This indicates that there are several shortcomings in the company’s human resource management practices. Based on relevant concepts and facts, this paper carefully analyses the survey results of Amazon Human Resource Management’s best practices on employee recruitment, training, compensation and benefits, rewards and incentives, performance appraisal, career planning, and engagement.

 

 

 

 

 

Recruitment

In the past, Amazon Company focused mainly on production and sales; however, due to the emergence of a competitive market environment, the Amazon Organization’s management is implementing plans that ensure the company combats the challenges of producing quality products and effective service delivery meets consumer needs. According to Maya et al. (2017, pg. 28), these challenges can be overcome through employee performance. Besides, Maya et al. (2017, pg. 25) argue that the key to overcoming this challenge is recruiting and retaining the right individuals in the Amazon Organization.

Figure 1 – Recruitment Survey Results

According to the survey results presented, about 99 participants strongly agreed, 36 participants agreeing while only 1 participant strongly disagreeing with the concept of a relationship between the performance and the recruitment. The results from 135 participants align with the idea that proper interview and employee’s performance has a statistically significant relationship. It implies that a proper recruitment procedure involving justifiable interview leads to positive employee performance. According to the results, a proper recruitment strategy and procedures by the Amazon Organization’s Human Resource manager will increase the employee’s performance. It is normal that when an organization conducts free and fair interviews, it will lead to recruiting the best employees based on merits and the company’s threshold, thus better employee performance. Also, these survey results indicate that the selection process influences employee performance. When human resource management implements strategies that improve employee recruitment, it would directly improve its performance. A result of 1% strongly disagreeing shows that employee’s recruitment is essential for employee’s performance. Therefore, the human resources management of Amazon Organization should maintain a positive relationship between recruitment and staff performance.

It is therefore important that human resources management implement a well-structured interview process during their recruitment process. The organization should ensure that the interview is free and fair to ensure that the company selects the right employees who meet the organizations’ thresholds for the available position. During the recruitment process, the management must provide the human resources department with a proper job description to execute proper job advertisements. This will ensure that only eligible and the right employees apply for the position. The human resources department should use the job description to assess employees during the interview process. It is also important that human resources management broaden the external recruitment sources of human capital. This will lead to equality for applicants and enhance employees’ performance by selecting competent employees (Sutanto, & Kurniawan, 2016).

Finally, the 20 participants who are neither agreeing nor disagreeing indicate the gap in the recruitment process, which the human resources department should work towards bridging. In most companies, workers are normally placed in a position where they are not qualified.  Human resources management must ensure that employees are placed in a position where they have a deep understanding of what is required of them.  Moreover, the human resources management should have an induction procedure in the company to help introduce new employees to help them feel loved and important.

Training

Survey research was appropriate for this study since it allows the investigation of a possible relationship between the training and employee performance as data was obtained from a broader category to compare two variables. The study population of 161 staff had 136 participants representing 85% strongly agreed that proper training directly influences employee performance. Additionally, 17 participants, which accounts for 10% of the participants, also had their response aligns with the fact that training directly leads to an increase in the employee’s performance. On the other hand, 5 participants neither agree nor disagree, while 2 and 1 participants disagree and strongly disagree with this idea.

Figure 2 – Training Survey Results

On the influence of training on employees’ performance, a collective 153 participants agree that training is significant in motivating employees. The training allows staff recognition and the development of self-esteem in the organization.  Through improving the employee engagement in the changes processes, the morale of employees will be highly lifted.  As a measure of employee engagement in the changes processes, the human resources management of Amazon Organization is more likely to induce the staff to take a new position after undergoing training. Also, training can motivate executive management to execute initiatives that are beneficial to other employees. Besides, the study results show that employee training support and encourage employee engagement in innovation and inventions. These results are in line with Rajaveni (2016, p. 270) research that employee’s engagement influences employee performance. An engaged employee feels strongly emotionally attached to the organization, leading to higher productivity levels and fewer absenteeism. When highly utilized, employee training initiatives are directly related to organizational outcomes.

Furthermore, the study relates that conducting training initiatives helps human resources management of Amazon Organization influence the employee’s performance in various ways. During training, employees involve themselves in a competitive situation, which encourages innovation and inventions as employees will strive to prove the best amongst themselves. This will enhance the employee’s skills and creativity, help develop innovative products, and uniquely develop valuable products that close rivals cannot easily imitate. This is important for the development and success in the current expansion situation where Amazon Organization strives to maintain the pressure resulting from the fast-changing evolution of technology and innovation.

Finally, 85% support the fact that training improves better employee performance. The study results align with Rajaveni (2016, p. 270) findings that employee training results in significant performance benefits for individuals and society. Through training, employee’s knowledge and information interpretation about several field matters will be improved through enhancing their enthusiasm. It is important to inspire and motivates employees through job satisfaction. Appropriate training leads to employee motivation through space satisfaction in between their skills necessary and operated.  The enthusiasm gained through training transforms the staff into well-organized and well-mannered influences on the Amazon Company’s performance. Therefore, the human resources management of Amazon Company must implement the necessary training initiatives from time to time to ensure that staff has the significant engagement to change process, innovation and inventions, and job motivation for improved employee and organization performance.

Compensation and Benefits

The survey results show that 131 respondents accounting for 82%, agreed and or strongly agreed. In contrast, 7% disagreed and strongly disagrees that the human resources management of Amazon company compensation influences the employees’ performance.  11% of the participants were neither agreeing nor disagreeing that compensation and Benefits directly influence the performance measured based on the Amazon Company’s performance. The 82% findings, therefore, prove that compensation and benefits directly influence employee performance.

 

 

 

 

 

 

 

 

 

 

 

Figure 3 – Compensation and benefits Survey Results

 

The study by Zafar et al. (2020, p. 320) aligns with these findings by arguing that employee compensation and benefits are critical in employee’s contractual agreement since it forces the company to compensate the employees for their efforts exerted in their job. Relatedly, 17% of the participants remain undecided on whether compensation and benefits directly lead to improved employee performance at Amazon Company. Zafar et al. (2020, p. 328)  pinned that compensation is valued as an important determinant factor for improved performance by employees. It has been the determinant factor in the past years whether employees leave or stay in the organization.

The findings supporting compensation and benefits as a determinant factor in improving the employee’s performance are in line with Sitorus et al. (2019, p.25), who States that compensation and benefits are the instruments used by human resources management to improve employee’s productivity. The benefits retain suitable employees in the company and encourage good management by enhancing employee relationships and commitments. Finally, the compensation and benefits help the management reduce tension and conflict levels. 82% of the respondents support the fact that compensating employees based on the efforts they exert on the company is very critical in encouraging and motivating employees.  According to Sitorus et al. (2019, p.30), the human resources management of Amazon Company must insert the compensation and benefits clauses in the contractual agreement between the company and the employees. A merit-based compensation and benefits will motivate the employees and encourage them to maintain a good relationship with their employers.  Human resources management should develop and implement strategies that include rewards and job promotion. In attaining these, the employees will feel important and appreciated. This will directly lead to higher productivity and improved performance by Amazon Company. Several studies align with these findings, showing that the impact of compensation and benefits is huge and that the benefits are significant in improving employee performance. According to Zafar et al. (2020, p. 320), compensation and benefits lead to a positive influence on employee performance in Amazon Company through various ways, which entail improved innovation, positive relationships, improved employee morale, and outstanding productivity.

Finally, compensation and benefits indeed have a positive and important effect on employee’s performance at Amazon Company. Therefore, human resources management must develop and implement strategies to raise wages, commission, and direct benefits.

Rewards and Incentives

The survey results show that 146 respondents accounting for 92%, agreed and or strongly agreed. In contrast, 3% disagreed and strongly disagreed that Amazon company strategy’s human resources management strategy to offer incentives and rewards influences the employees’ performance.  6% of the participants were neither agreeing nor disagreeing that rewards and incentives directly influence the performance measured based on the Amazon Company’s performance. The 92% findings, therefore, prove that rewards and incentives directly influence employee performance. This study has a primary objective to investigate the influence of rewards and incentives on employee’s performance in Amazon Company.

Figure 4 – Rewards & incentives Survey Results

 

The results show that there is a significant relationship between an employee’s performance and rewards and incentives.  92% of respondents support the fact that employees in Amazon are highly motivated when rewarded and provided with necessary incentives, and this leads to improvement in performance. The results show that if human resources management emphasizes employee rewards and incentives, its productivity will be highly improved. According to Wickramasinghe and Sajeevani (2018), maximizing the performance of Amazon Company is a big challenge for the human resources department. The available machinery, assets, and plants cannot generate the desired productivity. These factors have fixed production capacity.  He argues that only human resources productivity is subject to change depending on the availability of motivating factors. In his research, Pang and Lu (2018) explain that Amazon’s success directly depends on the quality of the human resources present in the company and human resources management’s ability to maximize the output from the employees. In this competitive environment, the development of a well-motivated workforce is important for its success.  Looking at the results, it is true that rewards and incentives can trigger and motivate employees to produce the highest possible performance and productivity for Amazon Company towards achieving its set goals and objectives.

This study’s results align with Wickramasinghe and Sajeevani (2018) research, who argues that employees are motivated to work by the needs, which requires the organization to satisfy. Such employees will be committed to the organization, which they evaluate to have the possibility of meeting their needs through rewards and incentives they will be accorded for the excellent work done. Today, the performance of employees in the organization is the major concern for human resource management. Despite the merits and experience of an employee, workers are sometimes reluctant to give out their best at their work station. Many people are only willing to work within the contractual agreement time and show no interest in putting extra effort in driving the organization’s goals and objectives.

Finally, the results show a significant relationship between rewards and incentives systems and employee performance. The relationship outlines an opportunity for the human resources management of Amazon Company to employ a rewards and incentives system as a motivating factor towards the realization of the company’s goals and objectives.

Performance Appraisal

Survey research was appropriate for this study since it allows the investigation of the possible relationship between the performance appraisal and employee performance. Data were obtained from the broader category to compare two variables. The study population of 161 staff had 146 participants representing 91% strongly agreed that performance appraisal directly influences employee performance. On the other hand, 5 participants, which accounts for 5% of the participants, had their response contradicts that training directly leads to an increase in employee performance. Finally, 9 participants neither agree nor disagree with the importance of performance appraisal in improving the productivity of Amazon Company.

Figure 5 – Performance Appraisal Survey Results

 

 

The study by Husain (2017, p. 5) supports the findings from these survey results. He argues that an employee’s performance appraisal is essential for measuring and rewarding performance. Human resource management can use performance appraisal to evaluate the employees across various performance metrics and identify high achievers. When used correctly, employees can understand their strengths and weaknesses and improve their weaknesses to reach their full potential. According to Kim (2016, p. 150), performance appraisal acts as a motivation tool. Human resource management needs to evaluate merit-based bonuses, promotions, and other performance outcomes to improve its employees’ morale. According to the results, 91% of the participants agree that it is important for the company to praise their employees for their good performance. Performance appraisal helps them better themselves and provide specific steps for reaching their full potential. It also helps employees focus on the positive aspect and advise them to build on their strengths.

The research by Husain (2017, p. 5) supports the findings related to how performance appraisal is normally used to compensate the employees by improving their paycheck and other available incentives.  This can help human resource management to identify the next stage in organization development. Employees require a conducive environment to be productive. By executing performance appraisal, employees will feel appreciated and motivated since they will satisfy their needs. The company needs to appraise its best achievers to avoid the situation of losing them. A well-motivated employee will go the extra mile to achieve the company’s goals and objectives.

Executing performance appraisal on your employees is always beneficial to the business. Performance appraisal leads to better staff retention. According to research by Kim (2016, p. 140), motivated employees work longer, stay active in the workplace, and produce excellent results. For the Amazon Company to improve the performance, human resource management needs to improve employee engagement. Also, the performance appraisal in a company promotes feedback to improve the service delivery of an organization. Employees deserve to be informed about the performance index and how they can improve on their weaknesses. Also, they deserve to be allowed to air out their views on the company and management.

However, the 5% percentage and 9% the respondents who strongly disagreed and those who have not decided shows that there still exists a gap in the application of the performance appraisal in the companies, which should be addressed by the human resource management of Amazon company to ensure employee reach their potential.

Career Planning

The survey results show that 133 respondents accounting for 84%, agreed and or strongly agreed. In contrast, 5% disagreed and strongly disagreed that Amazon’s company strategy to conduct career planning influences its performance.  11% of the participants were neither agreeing nor disagreeing that career planning directly influences the performance measured based on the performance of the Amazon company. The 84% findings, therefore, prove that career planning directly influences employee performance. This study has a primary objective to investigate career planning’s influence on employee’s performance in Amazon Company. The findings support the study by Hassan (2016, p. 18), who argues that career planning, including establishing career centers for their employees, contributes positively to Amazon Organization performance.

Figure 6 – Career Planning Survey Results

Similarly, these outcomes align with the research outcomes by Hassan (2016, p. 16), who outlines that various elements of career planning, such as planning of employee development in a company, trigger expansion and growth of the company. The outcomes show that career planning in the Amazon Organization has contributed to the career management of employees and eventually improves the company’s productivity through the development of expansion and growth of the Amazon Organization. Career planning entails developing career paths and families for work within a given locality and allowing employees to develop a vision of progress and well-structured goals and objectives. 84% of the participants agree that Amazon Organization has a well-laid career path and families of jobs in every department, contributing positively to career management. This well laid down career planning has contributed positively.

The outcomes show that career planning helps improve employee skills and eventually improving the productivity of Amazon Organization. The human resource management of the Amazon Organization must implement performance feedback and an effective performance appraisal system that provides an objective assessment of employees’ current performance and future potentials.  The performance feedback helps the company improve the relationship between the management and the workforce, thus developing understanding to reach their potentials. According to the results, the human resource department of Amazon Company should adopt career planning practices to help improve the employee’s performance. The management should implement plans and strategies that establish a place mechanism that supports career planning, such as career centers, career mentors, and counseling facilities.

Employee Involvement

The survey results show that 129 respondents accounting for 80%, agreed and or strongly agreed. In contrast, 16% disagreed and strongly disagreed that Amazon company strategy’s human resources management strategy support employees involved in improving the employee’s performance.  3% of the participants were neither agreeing nor disagreeing with the fact that employee involvement directly influences the performance measured based on the Amazon Company’s performance. The 80% findings, therefore, proves that employee involvement directly influences employee performance. This study has a primary objective to investigate employee involvement in employee’s performance in Amazon Company.

Figure 7 – Employee Involvement Survey Results

The survey results agree with Qi and Wang’s (2018, p. 748) research, outlining the positive correlation between employee involvement and a company’s performance. Engaging employees directly or indirectly develop valuable knowledge and innovation of products and services produced by the company. This eventually leads to improved productivity by the company. Human resource management needs to encourage employee participation to create job satisfaction and increased labor productivity. Similarly, past researches show that direct employee engagement in the decision-making process leads to a positive outcome, as everyone will be aware of the process.  Employee involvement also creates emotional bonding between employees and the management as they will feel and appreciated whenever they are consulted during the decision-making process. This will eventually motivate the employees to work extra hard this improving the performance of Amazon Company. Therefore, human resource management needs to encourage other departments to seek ideas on how the company’s performance and quality of services can be achieved. Executive management needs to emphasize and implement strategies that encourage employee involvement in the decision-making process.80% of participants support the strong relationship between employee engagement and participation in Amazon Company’s performance. Employee involvement contributes directly to productivity by increasing employee productivity and increasing its capacity to react quickly to transforming the operating environment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Antoni, C.H., Baeten, X., Perkins, S.J., Shaw, J.D., and Vartiainen, M., 2017. Reward management: Linking employee motivation and organizational performance.

Aydın, A., and Tiryaki, S., 2018. Impact of performance appraisal on employee motivation and productivity in the Turkish forest products industry: A structural equation modeling analysis. Drvna industrija: Znanstveni časopis za pitanja drvne tehnologije, 69(2), pp.101-111.

Hassan, S., 2016. Impact of HRM practices on employee’s performance. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(1), pp.15-22.

Husain, K., 2017. Impact of performance appraisal reactions on affective organizational commitment and work performance. Journal of Economic Info, 4(3), pp.1-6.

Kim, J., 2016. Impact of performance appraisal justice on the effectiveness of pay-for-performance systems after civil service reform. Public Personnel Management, 45(2), pp.148-170.

Oaya, Z.C.T., Ogbu, J., and Remilekun, G., 2017. Impact of recruitment and selection strategy on employees’ performance: a study of three selected manufacturing companies in Nigeria. International Journal of Innovation and Economic Development, 3(3), pp.32-42.

Pang, K., and Lu, C.S., 2018. Organizational motivation, employee job satisfaction, and organizational performance. Maritime Business Review.

Qi, F., and Wang, W., 2018. Employee involvement, public service motivation, and perceived organizational performance: testing a new model. International Review of Administrative Sciences, 84(4), pp.746-764.

Rajani, N., 2016. Impact of Training on Organizational Performance. In NATIONAL CONFERENCE ON LEAN MANAGEMENT AND ORGANISATIONAL EFFECTIVENESS (p. 270).

Rana, M.H., and Malik, M.S., 2017. Impact of human resource (HR) practices on organizational performance. International Journal of Islamic and Middle Eastern Finance and Management.

Sitorus, Cristy Gomgom Ebenzer, Rr Erlina, and Nova Mardiana. “THE IMPACT OF COMPENSATION, TRANSFORMATIONAL LEADERSHIP, AND EMPLOYEE SATISFACTION TOWARD EMPLOYEE PERFORMANCE.” JOURNAL OF BUSINESS STUDIES AND MANAGEMENT REVIEW 3, no. 1 (2019): 21-31.

Sutanto, E.M., and Kurniawan, M., 2016. The impact of recruitment, employee retention, and labor relations to employee performance on the batik industry in Solo City, Indonesia (Doctoral dissertation, Petra Christian University).

Wickramasinghe, M.D.N., and Sajeevani, T.L., 2018. The impact of rewards on retention of operational level employees in three apparel sector companies in export processing zone in Biyagama, Sri Lanka. Human Resource Management Journal, 6(2).

Zafar, M., Sarwar, A., Zafar, A., and Sheeraz, A., 2020, July. Impact of Compensation Practices on Employee Job Performance: An Empirical Study. In International Conference on Management Science and Engineering Management (pp. 315-324). Springer, Cham.