After reading the photos I provided,

Please answer question #2:

How important do you think Amazon's culture is as the cause of Amazon's corporate siza, dominance, and success? Explain.

INTEGRATIVE CASE 5.0 The New York Times Versus Amazon* employees with family tragedies and health issus paled The Letter to the Amazonians from Jeff in comparison to innovation and company performance Bezos Dear Amazonians, From the testimonies of former and current Amazon If you haven't already, I encourage you to give this (very the lengthy article echoed horrid stories that painted long) New York Times article a careful rcad. picture of Amazon that is less than reputable and quite I also encourage you to read this very different take by a deplorable. Based on the article, the retailer was known current Amazonian (Refer to Appendix A. for prohibiting employees from having any communica- Here's why I'm writing you. The NYT article promi- tive interaction with the media. Despite soch restraints, nently features anecdotes describing shockingly callous the Times noted that more than 100 former and can management practices, including people being treated rent employees had provided candid experiences the without empathy while enduring family tragedies and ymously. The article also contained sobering anecdotes serious health problems. The article doesn't describe ranging from supervisors maliciously peobing employees the Amazon I know or the caring Amazonians I work with cold-called pop quizzes to employees suffering sleep with every day. But if you know of any stories like those deprivation from consecutive nights of franticly working reported, I want you to escalate to HR. You can also to finish assignments. The overarching premise of the email me directly at jeffGamazon.com. Even if it's rare article targeted a quote by Bezos in a letter to sharehold or isolated, our tolerance for any such lack of empathyers saying, "You can work long, hard or smart, but at needs to be zero. Amazon.com you can't choose two out of three." The article goes further than reporting isolated ancc- According to the Times, employees who align them dotes. It claims that our intentional approach is to create selves with Amazon's hypercompetitive and imaginatie a soulless, dystopian workplace where no fun is had and culture are a part of the "in group and shielded from no laughter heard. Again, I don't recognize this Amazon ostracism. Particularly, employees rigorously brain and I very much hope you don't either. More broadly. storm peculiar and inventive ideas that may become I don't think any company adopting the approach por- viable products and services for the sake of profitability trayed could survive, much less thrive, in today's highly In a recruiting video, one employee stated, "You either competitive tech hiring market. The people we hire here fit here or you don't. You love it or you don't. There is are the best of the best. You are recruited every day by no middle ground. One employee even noted that it other world-class companies, and you can work any- you're a good Amazonian, you become an Amabot." where you want. According to the article, employees who hardly I strongly believe that anyone working in a company contribute to Amazon's success are subject to termi- that really is like the one described in the NYT would be nation as part of cyclical evaluation and ostracism of crazy to stay. I know I would leave such a company. underachievers often referred to as "purposeful Dar- But hopefully, you don't recognize the company winism" by a former Amazon human resources director described. Hopefully, you're having fun working with a and "The Hunger Games" by an HR expert on CNN bunch of brilliant teammates, helping invent the future, Amazon currently uses a controversial technique to iso and laughing along the way. late high performers from low performers. Notarized Thank you, by former Chairman and CEO of General Electric, Jeff Jack Welch, the retailer historically used an evaluative technique referred to as "stack ranking" or "rank and The Article That Sparked Controversy yank" in which employees were encouraged to viciously On August 15, 2015, a controversial front page article in compete against each other, thus creating a contes The New York Times shined a disturbing light on Ama- tious, dogmatic and cruel cultural environment. Conse zon that caused speculation and concerns of its culture. quently, the lowest ranked employees were eliminated The article, co-authored by reporters Jodi Kantor and which fashioned an environment comprised of only David Streitfeld, harshly criticized the online retailer for high achievers. its brutal and unrelenting work culture, and attempted to illuminate its harsh, cultural realities and expose Amazon publicly. Their piercing emphasis of workplace brutality University -- Texarkana, James Harbin, Texas A&M Universitet * This case was written by Brian L. Matthews, Texas A&M shined a light on the online retailer while concerns about Texarkana, and Jamie Daigle, Texas A&M City-Trans An internal phone directory, referred to as the Any their desk." Another testimony provided by Chris Brucia time Feedback Tool, was created for sabotaging others by explained that he was berated extensively about his sup allowing colleagues to send damaging feedback to anoth- posed poor job performance and given a punitive perfor er's superior. According to The New York Times, the need to compete for the top stratum created internal pressures mance evaluation by his supervisor during a conversation that created tension among team members. Consequently, where he was simultaneously being promoted. employees conspired to collectively give negative feedback ing Amaron's organizational norms of forcing employees The New York Times reported other stories denounc- on certain colleagues and positive feedback on each other For example, a former Army captain, Elizabeth Willet, answering text messages even while on vacation and to accept laborious tasks, answering emails past midnight, after having a baby and adjusting to parenthood, arranged being reprimanded, if unreachable. A former marketing her schedule to arrive at work at 7 a.m. and leave at 4p.m. employee, Noelle Barnes, recounts that employees were Subsequently, she recalled that her coworkers reported mindful of the unreasonably high standards adopted workforce deviance and poor job performance. She report when employment began. It was commonly known that edly told the Times that her supervisor informed her that "Amazon is where overachievers go to feel bad about no managerial defense could refute the accusations of her themselves," he said. peers. She quit after just over a year of employment. Additionally, white-collar workers were perpetually Amazon's Response to Criticism placed under analytic, management and psychological Jeff Bezos, founder and CEO of Amazon, vehemently scrutiny by which performance capabilities are measured regarded the now infamous New York Times article as slan- using an algorithmic tool that reinforces "survival of the derous and responded the weekend following the release. fittest." Blue-collar workers in warehouses find the work He penned a heartfelt note to Amazon's 180,000 employees, ing conditions to be grueling and intensely micromanaged in part stating. "The article doesn't describe the Amazoni to the extent of stark discomfort, including laborious toil- know or the caring Amazonians I work with every day." He ing in 100-degree heat for hours. Former executive John also recommended that employees read a Linkedin blog post Rossman says, "A lot of people who work there feel this written by Nick Ciubotariu, a senior Amazon employee, tension: It's the greatest place I hate to work." Similarly, who candidly defended Amazon and criticized The New Eric Moore, the chief technical officer of cloud and auto- York Times for perceivably and inaccurately distorting its mation at Hewlett-Packard Software Americas, stated, culture. Additionally, Beros contended that adopting such Amazon was the most toxic work environment I have a stringent, merciless culture would undoubtedly impede ever seen." Former Database Administrator from Amazon survival in today's competitive tech market. He agreed that Web Services, Angela Galper, stated, "I would start crying such a relentless environment depicted in the article would on Sunday nights and my husband devoted countless hours not be conducive for him nor others to work and that any to listening to my stories about my work days." one working in a company like the one described in The The New York Times article recounted instances in New York Times would be crazy to stay." which female employees were pressured to decide between Taking offense to the article penned by Kantor and work and family. One female employee, Molly Jay, whose Streitfeld, Jay Carney, Amazon's Senior Vice President of job performance was above reproach, began facing push- Global Affairs, emphatically responded to the alleged cru- back after traveling to care for her father who was stricken elty saying that "the Times got attention for their story, but with cancer. Similarly, the article tells of Michelle William- in the process, they did a disservice to readers, who deserve son, a 41-year-old mother of three children, who said, in better." Carney alleged that The New York Times misrep- her own words, that she was emphatically told that "rais- resented Amazon's cultural climate and misconstrued its ing children would most likely prevent her from success at competitive temper as an unforgiving, punishing company a higher level because of the long hours required." Another with mean management tactics that undermines the integ- response from a female employee noted lack of remorse rity of its employees. Carney expressed his dissatisfaction from the retailer when she gave birth and was diagnosed of the miscomprehended story as Kantor was asked to with cancer. recant her story after continual communication took place Other testimonies referenced occurrences where between February and mid-August to no avail. But, while employees became emotionally distraught in response to Kantor is not inclined to modify the horrific depiction of compulsive debates and criticism expected of employ. Amazon's brutal culture, Dean Baquet, The New York Times' executive editor, supported the merit of the article ces, thus creating a hostile and volatile work environ ment. Employees recall strict requirements to relentlessly and its authors, calling it an accurate portrait." dismantle the ideas of others. A former book marketing Regarding the credibility of the article, he reported, employee, Bob Olson, stated "You walk out of a con. "Virtually every person quoted in the story stated a view ference room and you'll see a grown man covering his that multiple other workers had also told us... The story did not assert that every Amazon employee had a difficult face. Nearly every person I worked with, I saw cry at mentary for its online product, and very little word-of- time there." In retort to Baquet's response, Carney criti- On July 16,1995, Bezos publicly launched Amazon. cized The Times for its failure to accurately corroborate the information it congregated with factual records to report the exactitude of Amazon's cultural climate. Also, mouth assistance. Despite no press releases or a residence just three days after its release, this resolve was buoyed by in Silicon Valley, Amazon quickly rose from obscurity to The Times" public editor who stated that the article lacked dominance with a searchable database of over one min substantive, irrefutable proof to truthfully convey the real- lion books and selling to customers in 50 states and 45 ity of Amazon's culture, rather relying on generalizations countries. Rightfully so, Bezos' mantra was "Get big fast- and subjective anecdotes. Moreover, the idea of capturing a predominant share of c-commerce became an emergent goal while finding way The Birth of an Online Bookstore to strategically establish the Amazon brand and grow Born on January 12, 1964. Jeffrey Preston Bezos is pro- ing revenue. As a result, by the end of 1996, book sales claimed by spectators and employees alike, to be a boister reached $15.7 million, in part by offering online customers ous, yet brazen and blunt enforcer of contentious creativity. tax-free incentives. In 1997, Amazon continued its mete Bezos became acquainted with computers at an early age oric ascension when it raised a staggering $S4 million in when a company based in Houston loaned mainframe com- stocks, or $29.25 a share. puters to his elementary school. Because his teachers were But, while Bezos and other "Amazonians were celebrating unable to decode the instruction manual, Beros and his its successful IPO performance, investors began doubting fellow classmates spent time learning how to program the Amazon's capability of remaining profitable and questioned complex mainframes. In 1986, Bezos graduated summa cum its viability. Hiring more than 7,000 employees, Amazon laude from Princeton University with degrees in Electrical continued its frantic yet strategic expansion while exploring Engineering and Computer Science. the possibility of increasing its product line and focusing on After working for the hedge fund, D. E. Shaw & Co. high volume sales. With the sale of CDs, videos, electronics, he became overly interested in the astronomical growth clothes, and other retail partnerships, Amazon's sales reached of Internet mail order services. Intrigued by this vast, over $17 billion by 2011. Along with Amazon.com, the untapped opportunity, Bezos embarked upon the jour launch of Amazon Prime and Amazon Studios, the purchase ney of applying the mail order model to beginning one of of the Washington Post, among other ventures, Amazon's the world's first online bookstores. With an investment of market value by has to Washington State to embark upon the start of the online larger than amazon.com puter programmers. After developing the site, Bezos tested $250 billion. and you're done his prototype using 300 friends before officially proceed- ing publicly. He aptly named the company Amazon, after Life as Amazon Sees it the longest meandering river in the world located in South "We Pioneer are the prominent words seen on Amazon's America. website describing the tone of its fine-tuned culture. Bold bets, intense originality, and imagining blunt impossibilities makes Amazon a place where those who truly embody an inventive spirit can thrive. Founded in 1994, "Earth's most customer-centric company" touts its concentrated efforts to provide customers with the proposition of discovery and cost conservation. Amazon's cultural paradigm is governed by leadership principles that establish parameters that create a mechanistic organizational structure, yet prompt innova tion with unyielding commitment. However, while millions have praised Amazon for its stellar marketplace dominance, life inside the retail giant may be largely secretive and believed to be grandiose in nature. Where confidentiality allows limited dialogue with organizational outsiders, Jeff Bezos and other top leaders are off limits. Despite its unprecedented and undeniable success the company has amassed a reputation for its stringent work conditions. While some applaud Amazon for their A amazon.com billion. a inventive way of getting the most out their employees, oth- peculiar candidates and practicing frugality. This ers view the retailer as an unrelenting, hypercompetitive dogmatic, yet peripheral focus on customer centrality and unforgiving place to work. This unrelenting, uncom- and entrepreneurial proficiency reflects the following promising attitude that governs intensified actions has statement by Bezos when he says, "Our passion for assisted in catapulting the retail maven into an echelon all pioneering will drive us to explore narrow passages, and, its own with market capitalization of approximately $250 unavoidably, many will turn out to be blind alleys. But, The development of Bezos leadership style reflects a with a bit of good fortune, there will also be a few that open up into broad avenues." telling approach and is characterized by an eagerness to Amazon's unique communication of its culture govern the behaviors of others, an unfiltered conveyance compels and pushes employees into a world that welcomes of criticism bordering hostility, and a supreme need for creative thought and is believed to be "an incredibly power. Amazon's unique method of innovation requires compelling place to work," as stated by Carney. However, new employees to rid themselves of poor habits learned while touted as "incredibly compelling," Bezos warns at preceding jobs. Bezos created the company's articles potential candidates that "it's not easy to work here" of faith for regulating employee behaviors by developing and that "this is a culture of working incredibly hard." mechanisms to internalize leadership principles in a syn- Renowned for having unreasonably high standards and chronized, perpetual manner. expectations, Amazon comfortably takes pride in being Amazon's rules are integrated into its employees' a tough culture. While Google and Microsoft offer fringe daily rituals and jargon, exploited during the hiring benefits (i.e., gym memberships, cash for new parents) process and expressively quoted in food lines at to extrinsically satisfy their employees, Amazon lacks lunchtime. This cultural logic guides every action, ranging such invitational gestures and competition along with its from brainstorming inventive ideas and ascertaining an monetary equivalence serves as recompense for intensified appropriate resolution to a problem, to interviewing efforts and unwavering pursuits of achievement. Questions 1. Using concepts from Chapter 11, how would you describe Amazon's organizational culture? Discuss. 2. How important do you think Amazon's culture is as the cause of Amazon's corporate size, dominance, and success? Explain. 3. What do you think would happen to Amazon's compet- itive advantage and dominance in the marketplace if it adopted a more people-centered (clan) culture? Discuss. 4. Based on Jeff Bezos' letter to his employees about The New York Times article, do you think Bezos is out of touch with the impact that Amazon's culture has on its employees? Explain. 5. If your instructor assigns it, read the blog response from an Amazon executive (Nick Ciubotariu, Senior Vice President, Software Engineering at Bright Machines) about the NYT's article, at https://www.linkedin.com /pulse/amazonians-response-inside-amazon-wrestling -big-ideas-nick-ciubotariul How does that blog affect your opinion about Amazon's culture