Zappos – They Did It with Humor
The CEO of Zappos Tony Hsieh depends on two focus areas to manage a successful business, customer service and culture. Zappos commitment to the highest level of customer service is legendary in the industry. Hsieh believes that his organization could be prosperous, regardless of the product they are selling, based solely on the customer experience. The culture is the main foundation of Zappos, and that culture is built on fun and family, which is evident in the organizations ten core values (Zappos. 2016). This assignment will answer the case analysis questions regarding Tony Hsieh’s unique leadership style and how Zappos can have continued success under new leaders (Schermerhorn & Bachrach. 2015. p. 457).
Leadership
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Excellent businesses are the direct result of excellent management, and Fortune magazine highly ranks them as one of the “Best Companies to Work For” (Schermerhorn & Bachrach. 2015. p. 456). His leadership style is a balance of both the Human Relations and Democratic styles. He shows the Human Relations style through the support of his employees over the tasks of work by his philosophy of building the culture and all other aspects of the business will follow suit (Schermerhorn & Bachrach. 2015. p. 456). The only aspect of his leadership that could come under criticism would be where the line between work and fun is drawn. With the company’s focus on quality over quantity, there might be financial benefits that are not being realized. The leadership approach that he takes is definitely situational and would not achieve the same result if it were implemented in such fields as health care or the legal profession.
Path-Goal Theory
In the path-goal theory, a confirmed example of the Zappos setting is supportive leadership. Hsieh believes that his employees should be free to be themselves (Schermerhorn & Bachrach. 2015. p. 456). The style of directive leader is more of a disconfirmed theory as it relates to Zappos, since employees are given more creative freedom to reach their goals instead of working to a predetermined standard (Schermerhorn & Bachrach. 2015. p. 456).
Continuing the
There is a great importance put on business leadership, this is directly due to how a business not only functions but in how fruitful the company can become. A great leader essentially can take a business plan that is weak yet turn it into a success, whereas a poor leader stands a higher chance of ruining the best of business plans. That is why it is essential to develop effective leadership throughout a companies entire management program at all levels. How does one develop or retain strong leadership? Companies must be focused on hiring strategies that encompass very specific parameters, building from within whilst creating a strong foundation for employee development and succession planning. Leadership is essential in any organization. The style and theory embraced determines whether the company will or will not achieve their goals. in all cases theory must be embraced, as a companies theory, style, and strategy is greatly dependent on the industry the company is in (Sadler, 2014). “The behavioral theory is one of the widely used theories of management. It suggests that leaders are made and not born. It gives room for training to install leadership traits in leaders at the expense of denying them a chance. There are various leadership styles embraced by companies (Cyert, & March, 2005).” This paper takes a look at the management styles of two specific
When the company was first founded by Andy Wong it was ran using a hands-on leadership style. He believed a good vision and direction were critical leadership qualities. He always said “you do not achieve commitment to, or an understanding of, a company’s vision and mission without actively pursuing and practicing it at every opportunity.” However, when he began spending most of his time travelling to the US and Canada and taking care of business development and
The path-goal theory’s focus is on the leader’s behavior that can allow for the employees to reach personal and organizational goals. A leader’s attitude has impact on the attitude of the staff. Leaders can reward employees when goals are met which can increase employee motivation, job satisfaction and overall productivity (Schultz, 2010). This theory identifies four styles of leadership as directive, supportive, participative and achievement-oriented (Schultz, 2010).
It has always been assumed that anyone in management, particularly the CEO, is a leader. However, there has been controversy over this assumption. While management involves the promotion of stability and enabling the smooth running of an organization, leadership is a process of influencing others and facilitating individual and collective efforts to accomplish shared objectives (Boone & Makhani, 2012). Leadership literature and practice consists of numerous approaches and it is by understanding the role that an individual leader plays in an organization that leadership?s effectiveness or ineffectiveness can be explained. Jung?s case study confirms what many scholars articulate in relation to the importance of leadership. This paper seeks to look at Andrea Jung?s leadership style and approaches to leadership in relation to the qualities associated with effective leadership as Avon?s CEO. Traits play a central role in differentiating between leaders and non-leaders and in predicting leadership and organizational outcomes.
His management style is consistent with the Assumptions of Theory Y Leadership, and many of his movements in recent years support a core tenant of the theory, that “The average human being learns, under proper conditions, not only to accept but to seek responsibility.” (Daft, Chapter 2: Evolution of Managment Thinking)
Tony Hsieh wants to take Zappos in a new direction with the introduction of a new product line,
I have to say that I did not know much about Steve Jobs before I read the article; however, I do know that when he had an idea he took it and he developed it to its full potential. He 's been hailed as a genius and the greatest CEO of his generation. I have heard that he was a high-maintenance supervisor who demanded excellence from his staff and was known for his blunt delivery of criticism. He was a very talented individual, a skilled motivator, a decisive judge, and a gifted strategist. Steve Jobs created a company that became known worldwide. He made digital devices more elegant and easier to use. He made a lot of money for Apple Inc. after people told
Zappos is acclaimed for setting the bar with regards to putting its clients first, supported and abetted by a connection with and upbeat workforce. The organization has apparently characterized the causal connection between a glad workforce and a similarly adjusted "reason with benefit" main concern. The organization's slogan and overall ethos is to "Delivery Wow" and since 1999, it possesses a great deal as such, serving a great many clients over the
Throughout the last twenty odd centuries, a vast amount of company leaders have altered and reinforced their management style and ultimately this has created high levels of inspiration, leading individuals to become a better leader. (Krebs. V, 2008, para.1).
Zappos, an online retailer, is proving that an unfamiliar approach to business can also help grow revenue. Zappos revenue grew from $1.6 million in 2000 to $1.64 billion in 2010. How can a company focused on happiness be successful? Zappos corporate culture and focus on customer satisfaction has made it both successful and a model for other companies. Zappos focus on stakeholder happiness contributed to its success. Tony Hseih in his book Delivering Happiness says, “It’s a brand about happiness, whether to customers or employees or even vendors” (Delivering Happiness)
Company would like to think that it stands apart from the competition. The appropriate method is to create a product or service with sufficiently distinctive attributes.
Daniels Fund Ethics Initiative University of New Mexico http://danielsethics.mgt.unm.edu Zappos: Delivering Happiness to Stakeholders INTRODUCTION Can a company focused on happiness be successful? Zappos, an online retailer, is proving that it can. The company’s revenue grew from $1.6 million in 2000 to $1.64 billion in 2010. Tony Hsieh, Zappos’ CEO says, “It’s a brand about happiness, whether to customers or employees or even vendors.” Zappos’ zany corporate culture and focus on customer satisfaction has made it both successful and a model for other companies.
When thinking of leaders, the big names such as Obama, Putin, and Cameron come to mind. However, there are leaders everywhere in society. In particular, the leader that I work for (the company will be referred to as “Print Co” and the leader 's name as “Boss”) runs a commercial print company in the Charlotte area of North Carolina. Leaders use many different styles, but there are six common types: “coaching, strategic, laissez-faire, bureaucratic, autocratic, and democratic” (Cunningham, Salomone, Wielgus, 27). Boss employs a style that combines coaching, strategy, and bureaucratic elements in order to manage a staff of ten. I will discuss this style in depth and evaluate how effective it is for communication, vision, and building talent.
Zappos is an online shoe and clothing shop website, and the company is famous for its happy working environment and culture building in the business world. According to Jon Wolske (2014), the Chief Culture Officer of Zappos, stated that the reason why Zappos found culture so important is that more people kept asking how to take their own approach to culture while the number of employees and customers increased quickly. Furthermore, the approach to culture helps Zappos drive the brand and service. According to Hoffman (2015), in Zappos, “from the company’s unique model of customer support to its intent that all employees work hard, but play hard too”.
His type of leadership style is one with high expectations of everyone within the company. He is a leader that also relies a lot on his manager’s input for the development of new ideas for the company. As the Wall Street Journal reported, he more than doubled sales to nearly $84 billion while CEO of P&G, partially through smart acquisitions like Gillette and other premium and beauty brands (DuBose).