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 internal culture. Moreover, the deep-rooted reason should be the problems of its human resources management. Lacking of a set of scientific and effective control and management system cannot guarantee the implementation of building both core value and enterprise culture of Alibaba. Therefore, the outline of this report about the human resource management issue behind the online fraud of Alibaba is as follows. On the one hand, the management and supervision system has problems. Alibaba Group has not supervised the management in the process of dealing with related complaints about fraud happened between 2009 and 2010, even though some suspected online trading accounts had been deleted and specific inquiries of its international market transaction had been conducted since the beginning of the third quarter in 2010. It appears that in this issue managers ignored fraudulent behaviours behind the performance-chasing. However, in the statement said by Mr. Ma, it was not allowed to violate business honest principal or the basic line of company values (BBC, 2012). Although managers in Alibaba Group have to take responsibilities for the consequences, it cannot be denied that the fraud fully exposed that the lack of internal control, especially the supervision and administration of the management, is one of reasons lead to exacerbate the situation.
Additionally, the event of online fraud has been doomed from the start to some extent. With the accelerating pace of internationalisation, the number of employees which rapidly increased from 11,700 in 2009 to 24,000 in 2012 has become a significant challenge that threats the development of Alibaba Group (Hua, 2012). However, weak awareness of the human resource control among Alibaba Group’s executives sets the stage for this online fraud scandal in China.
On the other hand, the company may not satisfy the physical and emotional need of its employees. Both the greedy desire and the psychological imbalance are the internal...