ASSIGNMENT TITLE: ZAPPOS AND HOLACRACY

ASSIGNMENT NO# 5TH

NAME: WAJEEH ARMAGHAN ASGHAR
ROLL NO# NDU-BS-18/S-784
DATE: 15-JULY-2020
SUBMITTED TO: MAAM AYESHA
SUMMARY
Holacracy is a new alternative organizational structure system being used by many companies
around the world, introduced in 2007 by Robertson, a 36 years old programmer, who was fade
up from the traditional hierarchy management systems that was being operated in the
organizations from the era of industrial revolution.

Zappos.com is an online multi-billion business that sells shoes as Amazon did bookselling in
beginning. Zappos has made Fortune’s list of “100 Best Companies to Work For,” ranking 86 in
2015. Zappos CEO, Tony Hsieh, has been instrumental in sustaining this level of success. A
focus on employee happiness is main secret of attain this success.

COMPANY OVERVIEW
Zappos.com is an online shoe and attire retailer situated in Las Vegas, United States. The
organization was established in 1999 by Nick Swinmurn and propelled under the area name
Shoesite.com. In July 2009, Amazon gained Zappos in an all-stock arrangement worth around
$1.2 billion at that point.

Zappos is centred around giving the best to the clients, the organization has the appropriately
managed Zappos Case Study Analysis Summary structure and the great client care notoriety in
the market, and all activities are done in the stockrooms, be that as it may, it has the over 1.5
million things. The organization needs to provide the acceptable things to the client so they can
be held as long as possible. The organization has numerous acclaimed items model, it sells,
satchels, pants, shoes, embellishments and so forth. The organization gives the data about the
items on the sites with the goal that they can get the advantages and can contacts on the off
chance that they face any issue in regards to the item, it has the verity and likely clients over the
world.

While clarifying the plan of action of the Zappos is centred around the 3 C's. The client
administrations, with the goal that the clients can be given advantages and there is have to
concentrate on their necessities. Apparel, they are giving the enormous range to assortment to the
clients with the goal that they can be fulfilled, be that as it may, last is the organization culture,
model their groups are cheerful and cooperate for the advantages.
They're trying to revolutionize how business is done and how people work. The name is an
adaptation of the Spanish word for shoe and this year, nine years after going into business
Zappos is on track to sell a billion dollars’ worth of shoes.

Every department has its own way of greeting visitors Zappos' headquarter is in Las Vegas,
where they do have office carol like almost Any other corporation but right there in the middle.
probably the most important focus for Zappos is to make sure we have the absolute best
company culture and part of our culture is just having a family like atmosphere and at times it
looks like-one of those Internet start-ups that disappeared when the bubble burst Go!

CORE VALUES

The president and CEO of Zappos, Tony Hsieh is crystal clear on the culture he needs to make
the company thrive, and he and his team have broken it down into ten core company values:

 1. Deliver wow through service.

 2. Embrace and drive change.

 3. Create fun and a little weirdness.

 4. Be adventurous, creative, and open-minded.

 5. Pursue growth and learning.

 6. Build open and honest relationships with communication.

 7. Build a positive team and family spirit.

 8. Do more with less.

 9. Be passionate and determined.

 10. Be humble.
HOLACRACY HISTORY
Holacracy is a new alternative organizational structure management system being used by many
companies from different fields around the world. This system is all about decentralization of
hierarchy system, give freedom to the employees and allow them to be boss of their work. This
system, Holacracy was developed by 36-years old programmer Robertson, who started doing
coding at the age of 6 years old and at the age of 13, he charges 25$ per hour to develop
software. At the age of 17, he was dropped out of college, he joined an Analytic Graphics named
company, whose boss still his friend and mentor as he has helped him a lot to grow
professionally. He started hating traditional hierarchy system as it does not allow employee’s
freedom. He left his job and started his own Software Development House, where he spent 6
years to learn different management systems and applied over his 12 members time. He picked
up the best parts of all the management systems and developed his own organizational structure
system named “Holacracy”. He with the help of his friend, who has background of HR manager,
develop a company named “HOLACRACY-ONE”. Which helps the organizations and
companies who wants to adopt this organizational structure system. It conducts seminars,
trainings and workshops to helps the organizations, companies and employees to understand this
new system, though those seminars and training are quite expensive starting with $4000 per seat.
It has also developed a management software which costs 500$ per month, companies like
Medium and Zappos own it.

HOLACRACY ADOPTATION AT ZAPPOS

Zappos CEO Tony Hsieh offered his nearly 4,000 employees an ultimatum last week: accept
Holacracy or leave. Holacracy is an alternative organizational structure that has been adopted by
companies around the world–including Medium. It sheds traditional hierarchies for self-
governing teams that get work done through tactical meetings. Zappos is the largest company to
have adopted the system, and the transition hasn’t been entirely smooth. Hsieh is anxious to fully
embrace Holacracy. He wrote that Having one foot in one world while having the other foot in
the other world has slowed down our transformation towards self-management and self-
organization.
Holacracy is not cheap and easy, as its has own rules and lingos and complicated to implements
in any organization that was being operated on traditional hierarchy system.
The hierarchical organization system goes back to the modern transformation, when
organizations needed to save responsibility while utilizing huge quantities of individuals. It was a
method of arranging work with the end goal that the division of work would be progressively
gainful and would have the option to improve over and again in an anticipated manner.
The Stanford University study says that “Hierarchy system led to conflict at higher level of
management”. As a result, the relationship between manager and employee has organically
shifted over the last few decades. In an ideal Holacracy, it’s impossible to tell who the CEO is.

CAUSE OF CONCERNS
Holacracy is not going to take a bad business idea and make it succeed. It’s not going to take a
team that doesn’t have the skills and make it brilliant but It’s more of an accelerant. Self-
management systems promise happier employees, healthier workforces, and as a result a more
successful company.
Completely restructuring a company from the standard org chart tree to circles is one of the
reasons the transition to Holacracy tends to be rocky. To create circles and roles requires a very
regimented process, called a governance meeting. It has not any defined rule for firing.

ANALYSIS
Holacracy is great system specially for 21 st century organization and companies. It should be adopted to
make the organization progress for both employee’s satisfaction and goals achievements.

RECOMMENDATION & CONCLUSION

Zappos is a great business in the 21st Century with a strong platform to thrive. The Internet Sales and
Viral Marketing business model fits well for a company that has expanded exponentially since it started.
It was a really good business decision to merge with tech giant Amazon and will give Zappos more
money to grow and keep doing what made them so successful.