Bryan Sappington
Organizational Behavior
11, December 2017
Case Study #3
In 1999 Nick Swinmurn started a humble yet successful online shoe company, Shoesite.com. Keeping in mind, this was pre-online shopping that we are so accustomed to today. Swinmurn attempted to work with local California shoe companies to encourage them to sell their shoes on his site. He offered to sell the shoes, in return, he would receive a modest fee for the sales generated "win" win." Swinmurn was not well received and heard many times no one will buy shoes without trying them on. Swinmurn later would be introduced to the capital investments group, Venture Frog. Tony Hsieh and Alfred Lin would ultimately be the source for funding Shoesite.com with …show more content…
As strategies change, the organization may conduct a reorganization plan. On average organizational reorg,'s happens about every three to five years. Organizational reorgs can have an impact on moral, and require lots of resources. The Holacracy organization believes the reorg needs to change more frequently, to keep in line with the ever-changing environments. In a traditional organization reorgs typically are a major revamp, whereas in a Holacracy organization the reorgs are incremental and happens at every level. Holacracy organizations have governance meetings in which they determine the need for a reorg. Hsieh essentially turned Zappos into what is known as a "teal " company. A teal company can be defined as a self-managed, allowing employees to find their purpose in the organization without the sole intent to make …show more content…
With the shift in the workforce, the Millennial, organizations are looking for an alternative was to provide employees with work satisfaction. Some of the concepts within the Holacracy have merit. However, the idea of Holacracy does seem way far to one side, and those employees that left Zappo's were accustom to a flat organization which in comparison would be considered more of a traditional organizational structure. A hybrid which encompassed the best of both traditional organization and also embraces the benefits of the Holacracy would probably be suited for Zappo's
Problem #2 Under the Holacracy structure there is no title, no mangers, no assigned pay raises, and employees have the ability to be assigned to various circles in which an employee feels their talents or just want to experience other talents have the ability to reorg based on a governance