Analysis of the Talent Pools at Amazon and Selection - Research Paper Example

?Table of contents Part 1.0 Background information about Amazon 2 1 Mission and strategy of Amazon 2 2 Products and services of the organization 2 1.3 SWOT analysis 2 1.4 Staffing in terms of employment categories 4 Part2: 2.0 Description analysis of pivotal talent tools 5 2.1 Brief overview of the concept of pivotal talent pools 5 2.2 Selection of pivotal talent pool 5 Part 3: 3.0 Analysis of the talent pools at Amazon and selection 7 3.1 Recommended staffing model for pivotal talent pool 7 3.1.1 Internal staffing model for pivotal talent pool at Amazon 7 3.1.2 Outsourcing 8 3.2 Recommendation for development of internal talent 9 3.2.1 Human resources development 9 3.2.2 Learning 10 3.2.3 Knowledge management 11 4.0 Estimated risk of attrition and retention 11 4.1 Employee retention strategies 12 4.1.1 Performance appraisal 13 4.1.2 Employee motivation 13 5.0 Conclusion 14 References 16 Part 1: 1.0 Background information about Amazon Amazon was founded in 1994 and it is headquartered in Seattle, Washington. Since its inception, the company has witnessed significant growth to become a member of Fortune 100 Company in the US. It specialises in selling a variety of goods and services online. 1.1 Mission and strategy of Amazon According to its official website, the company’s mission is: “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.” The company uses the strategy of selling a variety of products online and it targets customers from all corners of the globe. 1.2 Products or services of the organization Amazon.com offers millions of unique new, refurbished, and used items in categories such as books; movies; music & games; digital downloads; electronics & computers; home & garden; toys; kids & baby; grocery; apparel; shoes & jewelry; health & beauty; sports & outdoor; and tools, auto & industrial (Amazon, 2013). The company has also incorporated thousands of sellers and software developers which use its trademark across the globe. 1.3 SWOT analysis “A SWOT analysis is used to identify internal strengths and weaknesses of a business and external opportunities and threats facing it,” (Strydom J. p 31). This section outlines these environmental factors facing Amazon. Organization’s internal strengths and weaknesses Strengths Regarded as the world’s best online retailer of various products Technological innovation has driven the growth of Amazon.com to offer a wide range of products to the customers conveniently and at lower prices. It operates international retail websites, and worldwide network designed to fulfil the needs of the customers across the globe Amazon is comprised of teams that work across the world on behalf the customers and it provides 24/7 support to the consumers. Weaknesses The company is mainly present in developed parts of the world where some developing countries are not fully covered The payment methods used by Amazon are not compatible with other countries’ banking sectors Organization’s external environmental factors Opportunities The company has opportunities to partner with different retailers which will help it to increase the revenue it generates. New information and communication technology is continuing to develop hence the company is poised for continual growth. Threats Online retailing is now characterised by competition since a wide range of organizations have also adopted this strategy which is very convenient. 1.4 Staffing in terms of employee categories Amazon is an equal opportunity employer and it is committed to staff a diverse workforce on the basis of a barrier-free employment process. The company employs about 88 400 people around the world and it has offices fulfilment centers, customer service centers, data centers, and software development centers around the globe (Amazon, 2013). The company is guided by the provisions of Section 503 of the Rehabilitation Act of 1973, the Vietnam Era Veterans' Readjustment Assistance Act of 1974, and Title I of the Americans with Disabilities Act of 1990 to cater for the needs of diverse employees who work for it (Amazon, 2013). The company uses the strategy of hiring the world’s brightest minds in order to improve its competence in terms of performance. The company also creates an environment where employee skills can be improved in a bid to improve the experience for customers. Part 2: 2.0 Description and analysis of pivotal talent pools in organizations The realization of the importance and value of human resources has encouraged HR professionals to play key strategic roles in their organizations (Boudreau, & Ramstad, 2003). It can be seen that today’s systems are mainly centered on the aspect of efficiency in the organization. However, this can be achieved through the effective management of human resources in the organizations who perform all the tasks related to its operations. In order to achieve this feat, talent management is essential and this mainly derives from the concept of pivotal talent pool. In an organization, the pivotal talent pools often perform strategic functions that can determine its efficiency in terms of performance in its operations. In this case, the pivotal talent pools can be obtained from employees holding strategic positions that significantly contribute in the operations of the organization. For instance, the customer service representatives play a pivotal role in the operations of the organization towards the attainment of its objectives. According to Collings (N.d), talent management is essential in the organization given that it is concerned with “projecting employee/staffing needs and managing the progression of employees through positions.” Those people who display high degrees of outstanding talent in the organization ought to be elevated positions that can contribute to the organization’s sustainable competitive advantage. These people can be drawn from what is termed “pivotal talent pools” by Boudreau, & Ramstad (2003). For example, the employees drawn from the customer service department are able to contribute to the organization’s strategic objectives. This will also help the organization to gain a competitive advantage in its operations by virtue of retaining a dedicated and committed workforce with talent to fulfil the needs of the company. Brief overview of the concept of pivotal talent pool According to Boudreau, & Ramstad (2003, p.8), talent ship emphasizes HR as a decision science, and enhanced decisions that drive organization change and effectiveness. By combining logic, analytics, measures, and process, HR and business leaders are in a position to gain sustainable competitive advantage through the development of talent pool among the high potential & high performing incumbents to fill these roles (Boudreau, & Ramstad, 2003). In most cases, the success of the organization mainly depends on its capability to utilise the talent possessed by the employees within the organization (Boudeu, 2003). It is also imperative for the HR and leadership to identify as well as nurture talent among the employees. This can be done through adopting various measures that are designed to tap talent especially within the organization. Selection of pivotal talent pool and rationale According to Collings (n.d), the ideal method of selecting pivotal talent pool can be done through identifying high potential and high performing incumbents which the organization can draw upon to fill pivotal talent positions. In this case of Amazon, the selection of talent pool can focus on customer service representatives since they play a pivotal role in the organization. They deal with customers from various backgrounds and these form a strong foundation for the organization and this is the reason why talent ought to be nurtured in this department since it impacts on the overall performance of the organization as a whole. It is worth investing in this talent pool for the company since customer service representatives form the backbone of the organization. They also handle all issues related to customer needs. Part 3 3.0 Analysis of the talent pools at Amazon and selection As noted above, the company employs tens of thousands around the world and it has offices, fulfilment centers, customer service centers, data centers, and software development centers around the globe (Amazon, 2013). The company employs diverse people in the departments mentioned above and these people are strategic in its operations. The talent pool lies in these departments given that they are comprised of the people who carry out all the operations. As noted by (Boudeu (2003), the talent lies in the employees who perform various tasks in the organization. In order to fulfil its mission, the organization ought to widen its selection net so as to be in a position to attract a diverse pool of talent especially in the customer service department. The main reason for focusing on this group is that the organization deals with customers from different parts of the globe hence the need to have talented representatives who can fulfil the needs of the customers from different places. In most cases, selection of such people should be done on the basis of capability, skills as well as experience and competencies. These are the strategies for selection that should be implemented by the company as it strives to attract the best talent pools which play a pivotal role in its operations. Without identifying its talent pool, it may be challenging for the company to achieve its strategic goals and objectives. As such, the talent pool at Amazon is diverse given that it operates different departments across different locations in the whole world. 3.1 Recommended staffing model for pivotal talent pool Basically, Amazon is an equal opportunity employer and it is committed to staff a diverse workforce on the basis of a barrier-free employment process. The company employees the strategy of hiring the world’s brightest minds in order to improve its competence in terms of performance. In as far as staffing for pivotal talent pool is concerned, it is recommended that the organization should combine both internal and external staffing models since these models are effective in addressing this issue. 3.1.1 Internal staffing model for pivotal talent pool It is recommended that Amazon should adopt this strategy when carrying out staffing that is concerned with identifying the pivotal talent pool in the customer service department. There are many benefits for adopting this strategy by the organization. Identifying talent from within is advantageous for Amazon because these employees have knowledge about the operations of the company. It is easier to train and develop a parson who already has knowledge about the operations of the company than doing the same on someone who is new to the organization. This entails that the company will not waste a lot of resources training these people to gain knowledge required in taking up strategic positions in the company. This model is also ideal given that it can significantly play a pivotal role in motivating the employees in the company for their recognition for outstanding performance. This in turn will help the company to be in a better position to retain its talented workers which can sustain its operations in the long run. Talented employees are in short supply and they are demanded by many organizations. As such, this strategy will help Amazon to retain its talented employees. 3.1.2 Outsourcing This is the other strategy that can be used for staffing of talented employees in the organization. Basically, outsourcing refers to the process of contracting a vendor or third party administrator to perform the tasks related to recruitment and selection on its behalf (Heneman & Judge, 2006). There are different forms of outsourcing of specific staffing activities such as: executive search, skills testing, job relocations as well as assessment centers (Kleynhans, 2007). There are many advantages for this strategy and this is the reason why it is recommended that Amazon should adopt it in its quest to employ talented people. This helps the organization to concentrate on other core business functions while recruitment agencies perform all its staffing requirements. This strategy is cost effective since the organization does not need to spend a lot of money carrying out recruitment and selection tasks. Outsourcing is advantageous given that the recruitment agents have the skills and experience to headhunt for talent from a pool of potential candidates. In order to attract talent in technical departments at Amazon such as technology and process improvement, outsourcing can be a very good model since the organization will be in a position to attract the best candidates from the other organizations. 3.2 Recommendations for development of internal talent The following strategies have been recommended for Amazon in order for it to be in a better position to develop its internal talent. 3.2.1 Human resources development In order to ensure that the company continues to grow through the utilization of internal talent, it is recommended that Amazon should adopt a human resources development (HRD) strategy in its operations. HRD refers to the methods used by an organisation to help its employees to develop their skills and competencies at work (Kleynhans et al 2007). The advantages of adopting this strategy include the following factors: The employees will be in a better position to gain new knowledge and skills required for them to perform various tasks. Due to the dynamic environment in which the company operates, this strategy is very effective given that it will help the employees to keep pace with the changes that may take place in the environment. This will also help the employees in various departments at Amazon to improve their performance standards. The employees can be improved in terms of their competencies since they will be in a position to acquire new knowledge through training and development. This in turn helps the organization to gain a competitive advantage if the workers are competent in performing various tasks in their work. It is also recommended that training in the form of coaching and mentoring should be utilised by the organization in order to develop its employees. Through mentoring, experienced workers can be tasked with helping junior employees to gain experience and a better understanding of work while coaching involves one on one teaching between a senior and junior employee (Jackson & Schuler, 2000). These strategies are recommended since they are designed to develop the talent of the employees in the organization so that they can also contribute towards the achievement of the desired goals and objectives. The overall performance of Amazon will also improve in different areas where the organization operates. 3.2.2 Learning Another development that should be implemented by Amazon is related to the aspect of promoting learning among the employees in the organization. The growth of an organisation can also be achieved through learning. This is a process where the employees gain knowledge from others through interaction at workplace and this helps the organisation to operate effectively. The main advantage is that: Learning is concerned with creativity and innovation and these factors are about creating positive change in the operations of the organisation. Through promotion of learning, new ideas and knowledge are created and these are very useful to the growth and development of the company. This will significantly contribute towards the growth of Amazon in different areas where it is operating. This will also help it to keep pace with the changes taking place in the environment which in turn will help it to remain viable. 3.2.3 Knowledge management It is also recommended that knowledge management should be promoted at Amazon since this helps the employees to gain new knowledge and they are also given the opportunity to acquire the necessary skills needed in performing their duties. Through social interaction in the organization, there are high chances of managing effectively the knowledge that has been created and this helps the company to remain viable in its operations. It is recommended that Amazon should strive to create external factors that encourage the creation and management of knowledge since this is essential in the day to day operations of the company. 4.0 Estimated risk of attrition and retention strategies The major estimated risk of attrition can be attributed to the aspect of compensation of the employees in different parts of the globe. It is anticipated that the exchange rates and employment laws in different countries differ across the globe and these are likely to have a bearing on the operations of Amazon. When the employees discover that there may be differences in their compensation scales in spite of the fact that they will be doing the same work, they may be forced to leave the company. Pressure may mount on them to such an extent that they will be forced to view other avenues with greener pastures. This is the major risk that can be encountered by Amazon in its global operations. As such, there is need for the responsible authorities in the company to standardize pay scales across the globe so that a sense of equality can be created among the employees. Employee grievances must be taken into account in order for the company to reduce the chances of experiencing this risk of attrition. 4.1 Employee retention strategies After creating a balance between the needs of the employees and the needs for the organisation, the HR in the organization ought to put measures that are meant to retain all talented employees. Employee retention in this case is concerned with appealing to the interests of the workers so that they can continue working for the organization (Armstrong, 1999). There are long term benefits that can be derived by the company if it fully utilises this strategy. Employees form the backbone of the organisation hence they should be treated as valuable assets in order for them to stay longer in the company. This will contribute to the viability of the organization in the long run. 4.1.1 Performance appraisal Performance appraisal is an effective strategy that can positively contribute towards employee retention in the organization. Basically, performance appraisal is a process of systematically evaluating each employee’s job related strengths, their developmental needs and progress towards the attainment of the goals of the organization (Jackson, et al 2000). This strategy can also be used to appraise the employees, which is rewarding them for their outstanding performance. In appraising the employees, the HR management should provide feedback to the employees so that they can know where they need to improve their performance. This will help to create mutual understanding among them. It can be seen that regular assessment of progress made by the employees towards attainment of the goals of the organization helps them to remain motivated which in turn can lead to retention. 4.1.2 Employee motivation Employee motivation is essential in as far as the concept of retention is concerned. Jackson et al (2000) define motivation as a process of appealing to the interests of the employees so that they are encouraged to do something with vigour for the betterment of the organization in its endeavour to achieve its organizational goals. People are motivated by both internal and external factors. Each person has needs, goals and expectations and when these factors are fulfilled, then the individual is motivated to work hard in whatever he or she does. People can be motivated at work through offering them rewards for outstanding performance. This will help them to stay longer in the company because they will be aware of the fact that they get reward for their effort and performance at work. This strategy can help Amazon to retain its talented employees. Employees can also be motivated through giving them the autonomy to make decisions in their operations. The employees can also be employed by promoting them to higher levels in the organization for their outstanding performance. When such strategy is implemented, the employees will develop a sense of belonging to the organization since they would also be contributing towards its decision making process. The workers who are given the opportunity to contribute towards decision making in the organization are motivated to continue working for the company. Loyalty is also created through the use of this strategy and it can help to retain the employees. In order for Amazon to effectively deal with issues related to retention of its workers, it must implement these strategies discussed above since they are effective in motivating the employees. Research has shown that the effectiveness of the organization mainly depends on its ability to retain talented workers. It has also been observed that attracting new talented employees to the organization is quite challenging than retaining talented people already working for the company. Since Amazon strives to recruit talented people from different parts of the globe, it should also put measures that are designed to retain these people in the organization. 5.0 Conclusion The paper discussed the significance of pivotal talent pools in organizations and it particularly focused on Amazon. This company specializes in selling a variety of goods and services online and it employees about 88 000 employees across the globe where it has offices in different countries. It has been observed that the pivotal talent pool for this organization can be drawn from various departments that deal with different tasks that affect the organization in its operations. The aspect of pivotal talent pools mainly derives from the concept of talentship that is said to positively contribute to the performance of the organization if properly implemented. According to Boudeu, & Ramstad (2003, p.8), talentship emphasizes HR as a decision science, and enhanced decisions that drive organization change and effectiveness. In order for an organization to operate effectively, it should put measures in place that are designed to manage talent among the employees. The selection criterion for pivotal talent pool is twofold. The company can either select from within or it can use external strategies such as outsourcing in order to attract talented employees from the other companies. As discussed above, these approaches have various advantages to Amazon hence they were recommended to be used in its bid to select talented people who can contribute to its pivotal talent pool. However this is not an end in itself since there is also need to develop talent within the organization. It has been recommended that Amazon should use the strategies of human resources development, learning and knowledge management in order to develop talent among its employees. Attrition problems identified in this paper are related to differences in compensation scales for employees that can exist in different parts of the globe where the company operates. It has also been noted that retention of talented employees is very important in the operations of the organization. In order for Amazon to successfully retain its talented workers, it should use the following strategies: employee motivation and performance appraisal since these will help to create a sense of belonging to the organization by the employees. References Amazon (2013). About Amazon. Viewed from: . Armstrong, M. (1999). Human Resources Management Practice. 7th Edition. NY: Kogan Page Limited. Boudreau, J.W. &Ramstad Peter M. (2003)‘Talentship and HR Measurement and Analysis: From ROI to Strategic Organizational Change. Viewed from: . Boudreau, J. W. (2003). Sustainability and the talentship paradigm: Strategic human resource management beyond the bottom line (CAHRS Working Paper #03-21). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies. Viewed from: . Collings, D. (n.d). ‘Talent Management: What is it and why does it matter?’ Viewed from: . Heneman, H. & Judge, S. (2006). Staffing Organisation. 5th Edition. Boston: McGraw-Hill International Edition. Jackson S.E. et al (2001), Management, CT: Oxford University Press. Jackson S.E. & Schuler R. (2000), Managing Human Resources: A Partnership Perspective. NY: South Western College Publishing. Kleynhans, R. et al (2007), Management: fresh perspectives. CT: Pearson Education. Strydom, J. (2004), Marketing. 3rd Edition. CT: Juta & Co Ltd. Read More