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International Journal of Engineering and Management Research (IJEMR)
Year : 2017, Volume : 7, Issue : 5
First page : ( 163) Last page : ( 171)
Print ISSN : 2394-6962. Online ISSN : 2250-0758.

Evaluation of Implementing Holacracy, A Comprehensive Study on Zappos

Yugendhar Akkinapally1, Ali Syed Mahamood

1Director, Eilei Online Educations, Mahabubabad

Lecturer, EThames Degree College, Hyderabad, India

Online published on 8 December, 2017.

Abstract

Zappos is an online shoe and clothing store and a subsidiary of large retailer Amazon Inc. It's based in Las Vegas Nevada with over 1500 employee and 1 billion in revenue. It also has a Zappos Insights division, which is a subscription-based service for business people to refine their culture and better customer service. The basis for the case study is on Zappos announcement in January 2014 is replacing its traditional structure with Holacracy-a radical “self-governing” management system that eliminated all job titles and managers. This is Zappos part of CEO Tony Hsieh's vision to innovate and disrupt the business landscape. So far 10% of the company around 150 employees has implemented the model. The announcement has polarized critics and managers. There are many challenges facing this new experiment in management, as Holacracy has no strong precedence. Scalability is a major impediment in their quest to fully integrate the model by the end of 2014. The uncertainty and diversity of employee self-determination and motivation serves as another obstacle for Zappos.

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Keywords

Zappos, Online shopping, CEO.

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