Amazon has long had a turnover problem. This is often attributed to the relationship that management has to its employees. Management at Amazon tends to be hard-driving, demanding very high performance standards of its workers. In part, this is because the company wants to compete better. If employees are more efficient, such as in its warehouses, then customers receive their goods faster. That in turn is good for business, but it is not good for employees, and high turnover is a natural result. The company's management practices have been described as "digital Taylorism," based on principles of scientific management where tasks are clearly defined and measured. This leads to jobs, ultimately, that are unsatisfactory (Stefanova, 2015). As a result, Amazon has the second-highest turnover of any Fortune 500 company (Mahapatra, 2013).In order to address, this problem, Kotter's eight steps can be applied. The eight steps are to create urgency, to form a powerful coalition, to develop a vision and strategy, to communicate the vision, to empower broad-based actions, to generate short-term wins, consolidate gains and finally to anchor new approaches into the culture (Mindtools, 2016). Creating urgency should be the easy part. While Amazon is the leader in its field, it does face intense competition from other online retailers, and offline retailers. Ultimately, as the job market improves, it will have a more difficult time finding workers who are willing to work under stressful, difficult conditions for low wages. The problem with turnover is at the low-end jobs, not the high-end.. While Amazon does have programs for workers who can stick it out, such as stock options, it loses a lot of people getting to that point, and eventually it will find itself getting even lower marginal returns on new hires as the potential talent pool diminishes (O'Donovan, 2015).
This reality alone should be enough to create urgency within the organization. Amazon's leadership needs to recognize that a crisis will occur if it does not act, and therefore it must create the sense of crisis...
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