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Chapter 3

Application of Hofstede theory in Problem Solving in Amazon

Aug 13, 2017

Ethics is the consideration of cultural differences as well as other differences and working towards these differences with an attempt of influencing real production for both the company and the employees. Ethics accommodate the way that the business entity treats it employees as well as the clients that it serves to avoid the emergence of adverse issues within the company (Sinnick, 2014). One of such an issue is that of cross-cultural interactions and the need for cultural respect among varying groups of people. International corporations are at risk of this problem however it goes beyond just the multinational corporations. According to Craft (2013), other factors such as globalization increases cross-cultural interactions among companies that fall under the same category and conduct the same businesses. There are therefore several models that have been used to explain the motivations of these actions as well as facilitate the company in making ethical decision making when it comes to such interactions. Hofstede theory is one of such theories that when implemented adequately promotes positive outcomes and employs strategies that are relevant and useful in problem-solving. This paper narrates the use of this approach in solving some of the issues that Amazon has been facing recently.

Hofstede’s theory of cultural dimensions focuses on the recognition and effects of the culture of a society on its values and the impact that these two have on people’s behavior. According to Beugelsdijk, Kostova & Rota (2017), the theory is based on the factor analysis that uses four other dimensions namely the uncertainty avoidance, power distance, individual collectivism, and masculinity-femininity. The theory advocates for the recognition of the cultural differences, acknowledgment of the things that could bring out the distinction between various groups of individuals (Nistor, Lerche, Weinberger, Ceobanu & Heymann, 2014). Acknowledging that there is a difference works to serve better international and cross-cultural conflicts. An assumption, according to this theory, often results into negligence and consequent misunderstanding and unprecedented hate for one another. Craft (2013) states that with the availability of information technology, companies could embrace the need for educating themselves on the various cultures that they will have to deal with every day to find common ground and make sense of the differences. The value and relevance of this theory in the issue of concern in ethical decision making are that the acknowledgment associated with this approach reduces the possibility of errors and increases international relations that are often characterized by peace and more understanding.

In 2015, Amazon one of the largest online retailers in the world was criticized for promoting an unethical work culture that negatively influenced employees (Kantor & Streitfeld, 2015). These cultures most benefited the organization and compromised several aspects of the employees within the organization. Ruder (2015) states that as a large company, it is expected that Amazon would steer away from the spotlight and work on its culture that positively reflects its principles and work ethics. This has however failed to be true, and especially in the year 2015, some scandals manifested itself within the company. Earlier that year, it was said that the company had initiated toughness as a primary ethic that would enable employees to be on time and work extra shifts. Like most businesses, this was no big deal and something that would have been encouraged. Amazon, however, took on a different perspective by forcing employees to live in tents and work under stressful conditions, extra shifts that went unpaid all in the name of pushing for productivity.

The New York Times defines the work place ethic of Amazon as being bruising and adequately peculiar. While externally, Amazon may is seen as a powerhouse that is full of innovation and delivers to its clients. It promotes a poor internal culture that may easily affect the number of new employees that join the enterprise (Kantor & Streitfeld, 2015). The first of this is the setting of unreasonably high. For this reason, employees have been known to “steal and drill” each other’s ideas. This, as stated in the NYT, is best known as tearing apart of the ideas to promote innovation and positive contribution. The company additionally lacks boundary values and has been known to intrude with the work flow and timeliness of the employees. Odd working hours including the need to answer to work related emails long after midnight are also seen as a common occurrence in Amazon.

The other standard issue ethical/cultural issue that has been witnessed in Amazon is sabotaging of employees through anonymous feedback to bosses. Feedback may be a good and productive thing within an enterprise as it promotes positive contribution and puts the company in check. It, however, fails to do this if the feedback is used for causing a commotion in the enterprise. One specific example cited in the NYT is the use of this to belittle one or complain about another employee’s contribution. This is quoted as “I felt concerned about his inflexibility an openly complaining about minor tasks.” Such a statement comes off wrongly and my affect openness and the value of feedback in the organization (Kantor & Streitfeld, 2015). Amazon, therefore, needs a change in cultural practices and how it handles I process as well as employees. This is possible with the application and utilization of the Hofstede theory of cultural dimension.

A workplace is a diverse place, and Amazon is no exception when it comes to working a versatile and multi-cultured system (Ruder, 2015). With a broad range of products and services, the company must explore the need for cultural recognition and coexistence. Ethically this enables the organization to identify and recognize the need for cross cultural existence and tolerance. This theory further facilitates the need for understanding and implementation of systems that are active and developmental to the employees and the company equally.

With this in mind, it is evident that Amazon has set up strategies that are working towards created that culturally ideal environment. The results are seen through the acknowledgment and recognition of these processes by the employees and former employees. Beugelsdijk (2017) asserts that naturally, certain cultures may be seen as negative especially when one is still working within an organization and comparing it with others. Uniquely Amazon has the policy of urging employees to be creative and appreciative of personal skills and pushing the employees beyond their limit to the best of their ability and innovation. This then surpasses the cultural differences. In this spirit, Amazon may eliminate the use of anonymous feedback to make a judgment on its employees. According to Sinnick (2014), it should be recognized that some people are sensitive to such issues and implementing such cultures must be artistically performed. The theory advocates for the recognition of the cultural differences, acknowledgment of the things that could bring out the distinction between various groups of individuals (Nistor et al., 2014). Acknowledging that there is a difference works to serve better international and cross-cultural conflicts. An assumption, according to this theory, often results into negligence and consequent misunderstanding and unprecedented hate for one another. Urging people to give feedback is not a negative thing it is the use of this feedback that may affect the company negatively. When applying the Hofstede theory to eliminate this issue the management of Amazon could quickly devise a better channel of communication that promotes open feedback while trying to create a suggestion for improving situations. An employee, due to cultural difference, may not be secure with the idea of being scrutinized. This has the impact of reducing staff confidence, reducing innovation and the overall confidence of the key players.

In conclusion, the application of the Hofstede theory in problem-solving within the organization is marked with the identification of the issue in question, then identifying the impact of the problem then formulating ways through which the problems can be eliminated. As in the case of Amazon, there was the identification of the problem which was a stern cultural approach of process implementation that led to frustration and internal pressures to deliver. Furthermore, this had the impact of reducing morale and affecting the customer satisfaction indirectly. The implementation of this change then proceeded to encompass the change in cultural approach and embracing diversity when it came to personalities and traits. Finally, a good company is one who holds high the value of the employees and the role that they play. There should be limited pressure and one that is easily tolerable and understood by the employees. At best the employee should promote education for the employees to help them understand internal processes that promote growth and not just productivity of the company.

References

Beugelsdijk, S., Kostova, T., & Roth, K. (2017). An overview of Hofstede-inspired country-level culture research in international business since 2006. Journal of International Business Studies, 48(1), 30-47.

Craft, J. L. (2013). A review of the empirical ethical decision-making literature: 2004–2011. Journal of Business Ethics, 117(2), 221-259.

Kantor, J. & Streitfeld, D. (2015). Inside Amazon: wrestling big ideas in a bruising workplace. New York Times. Retrieved from: https://www.nytimes.com/2015/08/16/technology/inside-amazon-wrestling-big-ideas-in-a-bruising-workplace.html?_r=0

Kantor, J. & Streitfeld, D. (2015). Inside Amazon: wrestling big ideas in a bruising workplace. New York Times. Retrieved from: https://www.nytimes.com/2015/08/18/technology/amazon-bezos-workplace-management-practices.html

Nistor, N., Lerche, T., Weinberger, A., Ceobanu, C., & Heymann, O. (2014). Towards the integration of culture into the Unified Theory of Acceptance and Use of Technology. British Journal of Educational Technology, 45(1), 36-55.

Ruder, A. I. (2015). Agency design, the mass media, and the blame for agency scandals. Presidential Studies Quarterly, 45(3), 514-539.

Sinnicks, M. (2014). Practices, governance, and politics: applying MacIntyre’s ethics to business. Business Ethics Quarterly, 24(02), 229-249.