Reward and Performance Practices at Amazon

Topics: Jeff Bezos, Decision making, Amazon.com Pages: 4 (1259 words) Published: June 5, 2013
Running Head: Amazon.com Decision Making Process

Part B: Amazon.com
MGMT 645: Organizational Behavior

Abstract
Decision making is a process undertaken by managers of an organization to choose the best plan of action from multiple choices. It is a complex process that is influenced by the behavior of the individual charged with making the decision. As emotions influence a person’s preferences and ability to evaluate alternatives, there must be strategic measures in place that permit objective decision making to arrive at the best possible outcome.

Amazon.com: Reward and Performance Practices
Situation
Reward and performance practices involves the development of specific incentives by a company, designed to meet the needs of their organization and employees. Rewarding employees with money is probably one of the most utilized methods of applied performance practices (McShane & Gilnow, 2013). Companies consider multiple factors when applying financial rewards to their employees. McShane and Gilnow identified four objective practices by which financial rewards are allocated. These are Membership/Seniority, Job Status, Competencies, and Task performance. Designing a reward system based on these objectives is important with respect to maintaining competitiveness against rival companies. Companies should design their reward strategies that at least match if not exceed those offered by their competitors. Companies with lucrative reward practices in place, safeguards the attraction and retention of quality workers and motivates their existing staff. Amazon.com Reward Strategies Overview

The initial growth of Amazon.com was nothing short of astounding, growing from 1,300 employees in 1999 to more than 7,000 in September, 2000 (Marketing Strategies of Amazon, n.d.). Not only did the company hire as many as 6,000 people within 18 months, they we’re able to do it by offering salaries at or below the median in the industry (Handel, 2000). The...
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