Zappo's Holocracy

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Zappos to ZAPP Away the Fat to Become Leaner and Meaner Introduction Zappos.com, Inc. (Zappos) is generally known for selling shoes and accessories; however it has now grown into much more than that. Established in 1999 and acquired by Amazon in 2009, Zappos has grown to become the world’s largest online shoe store. This company is not only known for its wide variety of shoes and accessories, but also for its unparalleled return policy. Zappos actually encourages its customers to buy shoes in multiple sizes and just send back the ones that don’t fit. This company prides itself on being a service industry, first and foremost, rather than just a mere retailer. Furthermore, this particular business can be described as timeless,…show more content…
51). This theory is being used within Zappos. Effective leadership increases an organization’s ability to meet all challenges, including maintaining a competitive advantage, the need to foster ethical behavior, and the need to manage a diverse workforce fairly and equitably. Managers at all levels and in all kinds of organizations have their own personal leadership styles that determine not only how they lead their subordinates but also how they perform the other management tasks (Jones & George, 2009). Managers must create an organizational setting in which people are encouraged to be innovative. Typically innovation takes place in small groups or teams; management decentralizes control of work activities to team members and creates an organizational culture that rewards risk taking. Based in Las Vegas, this location was not the most cost efficient locale, however it proved to be a wise decision. Relationships among Zappos’ employees became deeper, as they worked together, played together and sometimes lived together (McDonald, 2011, p. 128). Zappos is a refreshingly authentic, culture driven success story (McDonald, 2011, p. 128). Today more organizations are realizing that people are the most important resource and that developing and protecting human resources is the most important challenge for managers in a

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