Question

In regards to Zappos, do you think Tony Hsieh's three months of salary to employees who would quit was a good idea under the circumstances?

What are the positives about an organizational structure like Holocracy? What are the negatives?

What kid of people do you think Zappos attracts with its new recruiting structure?

Answer 1

1. Tony Hsieh was offering 3 months salary to the employees who would quit which were appropriate as per the circumstances. Because this will motivate the employees who are looking for the organization change. Tony wanted to increase transparency in the organization and wanted to maintain a relatively flat organizational structure. This would only be possible if the employees of Zappos understand the advantages and disadvantages of Holocracy.

2. Advantages

Quick Decision Making is an outcome because the decision makers are nearest to the esteem point (where the product/work happens).

Colleagues (commonly) have a higher amount of engagement and commitment since they are engaged decision making and goal setting.

Each circle is a group with a charge. They cooperate to achieve the mission of the group.

For the most part, it is less demanding to spot dissonance with colleagues. There is less space for subversive conduct and then water cooler commiseration

Disadvantages:

Groups or circles can be eliminated if it is seen they are not working effectively or not operating successfully.

For some the consensual, democratic decision making and getting everybody's supposition can appear to be turbulent and an excessive amount of agreement, an excessive amount of effort.

It can be troublesome working on a team.

3. The people who can take accountability for their role, who are motivated to work in a flat structure. As Zappos orientation is very intense and it also expects the new joiners to come before 7 am and also, score at least 90% in the end test, so the candidate should be motivated enough to put some extra effort and bear the responsibilities given.