Amazon’s Organizational sfdrew Structure.pptx

Amazon’s Organizational Structure

1. Amazon’s Organizational Structure Group Members: Hamza Gul 42398 Hasnat Abbasi 42213 Syed M. Ali 42401 Mufeed Ali 42616 Saad Rasheed Hafi ur rehman

2. Introduction to Amazon Amazon is one of the world’s largest and most influential e-commerce companies. Founded by Jeff Bezos in 1994, Amazon started as an online bookstore and quickly expanded its offerings to include a vast range of products and services. Jeff Bezos remained its CEO and president until 2021. As of 2025, he remains Amazon's executive chair and one of its largest individual shareholders. It is Operating in over 100 countries, Amazon continues to expand its global footprint by localizing services, adopting new technologies

3. Amazon’s Organizational Structure

4. The 6 Elements of Organizational Structure

5. Work Specialization at Amazon At Amazon, work is divided into small, specific tasks, and each employee focuses on doing just one type of job. This is called work specialization . For example: In Amazon warehouses, some workers only pick items from shelves. Others may only pack boxes or label packages. In customer service, some employees handle refunds while others answer delivery questions. In the tech department, some engineers work only on the website, while others focus only on mobile apps. By giving each person a specific task, Amazon makes sure that: Employees become very good at their job because they repeat the same task. Work gets done faster and with fewer mistakes. The whole company saves time and money. This system helps Amazon deliver products quickly and keep customers happy.

6. Departmentalization Amazon uses three main types of departmentalization : 1. Functional Departmentalization This means that jobs are grouped based on what people are good at or trained for. For example: The Finance Department handles money, budgets, and payments. The IT Department manages computers, software, and websites. The Marketing Department works on advertising and selling products. 2. Product-Based Departmentalization Amazon is a huge company that offers many different products and services. So, it also creates departments based on what product or service they manage. For example: Amazon Retail focuses on selling products online like clothes, electronics, books, etc. Amazon Web Services (AWS) handles cloud computing services for other companies. Prime Video works on movies, TV shows, and video streaming.

7. 3. Geographic Departmentalization Because Amazon works in many countries, it also organizes its operations by region. For example: One team manages Amazon in North America (USA, Canada). Another team manages Amazon in Europe (Germany, UK, France). Another handles operations in Asia (India, Japan, China, etc.).

8. Chain of Command Concept How it shows up at Amazon Authority • CEO & senior leaders decide big things like entering new markets . • Single-Threaded Leaders (one person who owns a specific product such as “Alexa Voice Shopping”) can approve features, budgets, and timelines for their team . • Front-line managers in a warehouse can change shift schedules or assign workers to different packing stations. Responsibility • A fulfilment-center packer is responsible for getting the right item into the right box . • An AWS engineer is responsible for keeping a server running 24 / 7 . • A delivery-station manager is responsible for on-time last-mile deliveries and safety records. The chain of command is the system that shows who gives orders and who follows them in a company. It’s like a ladder, where instructions move from the top to the bottom.

9. Span of Control 🔍 How Amazon Uses Span of Control Amazon uses different spans of control in different departments, depending on the type of work . 1. Narrow Span of Control – In Technical & Strategic Roles In areas like: Amazon Web Services (AWS) Software development Product design Marketing strategy The work is complex , and employees need more guidance, creativity, and problem-solving . So, each manager only supervises a few people (around 5–10). Example: A manager leading an Alexa development team may supervise only 6 engineers, so they can give each person more time and attention.

10. 2. Wide Span of Control – In Operational Roles In areas like: Fulfillment centers (warehouses) Customer service Logistics and delivery stations The work is repetitive and process-driven , so one manager can handle many workers —sometimes 30, 50, or even 100 employees at once. Example: A warehouse shift manager might be responsible for 70 workers packing and sorting products because each worker follows standard procedures.

11. Centralization and Decentralization 🔹 1. Centralization at Amazon (Top-down control) At the top of the company , Amazon’s headquarters and senior leadership (like Jeff Bezos in the past, now Andy Jassy ) make the big, important decisions. These include: Launching new products or services (like Amazon Prime or Alexa) Entering new countries or markets Setting company-wide rules, policies, and goals Major financial decisions and investments 🔹 2. Decentralization at Amazon (Local flexibility) In day-to-day operations , Amazon gives a lot of freedom to teams and local managers . This is called decentralization . Examples: A warehouse manager in India can decide how to organize shifts or improve delivery routes. An AWS (Amazon Web Services) team can work on its own product roadmap, features, and client support without waiting for approval from the HQ. Regional offices in countries like Germany or Japan can run their own local promotions, websites, and customer service based on local needs.

12. Formalization Formalization Means How much a company depends on rules, procedures, and clear instructions for doing tasks. 🔸 1. High Formalization at Amazon Amazon is known for having high formalization , especially in: Fulfillment centers (warehouses) Logistics and delivery Customer support These areas have: Standard Operating Procedures (SOPs) Every task (like packing or labeling) follows a clear written process. Technology tools Workers use barcode scanners, dashboards, and AI tools to guide their every move. Performance goals Employees must follow specific time limits (e.g., how many items to pack per hour). 🧾 Example: A warehouse worker must scan items in a set order, place them in the right bin, and follow safety rules exactly. Everything is measured and monitored.

13. 🔸 2. Low Formalization at Amazon In other areas like: Amazon Web Services (AWS) Alexa development team Marketing and design teams There is lower formalization , meaning: Employees have more freedom to experiment and be creative. There are fewer strict rules —only general guidelines. Teams decide how to build features , solve problems, or launch new ideas. 🧾 Example: An AWS team might explore new ways to improve cloud security or design a new tool. They use creativity and teamwork, not step-by-step instructions.

14. Conclusion Amazon’s organizational structure is a well-balanced system that supports its massive scale and global success. By combining work specialization, clear departmentalization, a strong chain of command, varied spans of control, a mix of centralization and decentralization, and both high and low formalization, Amazon can deliver products efficiently, innovate continuously, and serve customers worldwide . 🏁 Final Thought : Amazon’s smart and flexible structure helps it grow fast, stay innovative, and deliver excellent customer service — all while managing one of the largest companies in the world.