Uploaded by Alannah Boyde

Analysis of Management Concepts in Zappo's Company

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Frameworks that organizations use to promote motivation among employees besides the POLC
framework used by Zappos consists of the sustainable management practices used in each business's
organizational structure and design. The formalization in the mechanics of an organization's culture and
its system will affect the framework and strategies in motivating employees. (Robbins, S. et al. ch.7,
2019)Rewards to boost employees' performance can be extrinsic in having compensation programs and
policies that fulfill employees' needs and benefits(Robbins, S. et al., ch. 15, 2019). Recognizing the
employee's skills and contributions to the organization by rewarding creativeness and openness to
diversity in critical thinking allows solutions and strategies to accomplish challenging tasks. Can be
rewarded by having benefits such as promotions, increase in salary or health benefits. Other rewards to
improve employees' performance and motivate them to meet organization goals could be communication
in work-life effectiveness and balance out of work(Robbins, S. et al., ch.9, 2019). Having managers who
contribute towards objectives and allowing employees' opinions in alternative methods to solutions
creates a healthy relationship between employees and managers. Another fundamental function has
diversity within the workplace, including recognizing minority groups and subcultures valued and
accepted throughout the organization, allowing and promoting socialization among staff. (Robbins, S. et
al. ch.2, 2019) Having such an ethical culture will provide characteristics that give challenges and
involvement in those challenges that may be detrimental in hard times of external environmental
factors—having efficient conflict resolutions. It creates an innovative culture. It allows the structure to be
adaptable and responsive to any changes that may arise.
Zappos being acquired by Amazon results in several potential positive and negative changes towards
Tony Hsieh's company. Assets could expand resources towards the company—network relationships
among distribution, manufacturing, and competitive companies—more efficient sale processing
mechanics. Improved policies and values, better tools in structuring financial position and plans, and a
more effective marketing campaign is gaining more consumers from an established organization
(Robbins, S. et al., ch.5, 2019). Downsides could be the change of Hsieh's original organizational culture
change. Referring to Robbins, S. ``Organizational culture described as a system of shared meaning and
beliefs held by organizational members that determine relationships among one another and outsiders'
'(Robbins, S. et al., pp. 38, ch.2, 2019). It could also create problems in not integrating with Amazon's
Organizational design. (Robbins, S. et al., ch.11,2019) Breaking it down the departmentalization in
Hsieh's goals may not assimilate to Amazon's plans. It may change how decisions within the company
that were decentralization decisions have become centralized among departments' hierarchy systems for
changes and solutions for the company. It may also affect the formalization of policies and procedures
that employees need to follow (Robbins, S. et al., ch.11, 2019).
Challenges with the techniques Zappos utilizes as an approach toward the employees may not be
responsive or economically sustainable in another organization. The values of management may not
correlate to the importance of employees. The ethical dimensions decisions towards the company and
employees may not have the same value(Robbins, S. et al., ch.6,2019), for example, in an industrial
organization with an assembly line of employees that manufactures car parts. The company's importance
is efficiency, speed, and the amount of output completed per employee daily while being cost-effective in
the materials used and distributing departments to achieve that part for sale. An employee's performance
is determined by the time it takes to make that part, inspect it for flaws, and prepare to ship out to the next
department. Social screening also "applies to social and environmental criteria in investment decisions"
(Robbins, S. et al., pp. 142, ch.6, 2019). Zappos example of customer service representatives- having no
time restriction in telephone calls to care for customer complaints making personal connections cannot be
used in another company whose fundamental structure could be different. Based on the example given for
an industrial company, the time-consumed and not being used efficiently creates a deficit to the
company—resulting in a loss for the employee in pay per quota ratio often used in industrial
organizations. The organization's standards in goals, which are considered beneficial and productive,
cannot be achieved. due to employee performance compared to Zappo's example of employees' processes
and guidelines. (Robbins, S. et al., ch.8, 2019).
The offer of $2,000 to quit is to differentiate employees who sustain employees' motivation who affiliate
with Zappos core values. Promoting design thinking and decision making with the same energy and
commitment among staff (Robbins, S. et al., ch.5, 2019). If employee's values and mindset are not the
same as Zappos, it could create issues in developing employees and management relationships. Promoting
a way out for quitting to a poor culturally fit individual saves expenses in further training or future
performance and work ethic from that employee whose personality and behavior may not mesh with the
rest of the employees and team, which will result in the efficiency of processes and decisions of
managers(Robbins, S. et al., ch.7 & 8, 2019)
Reference
Robbins, S., Coulter, M., Leach, E., Kilfoil, M. (2019). Management. North York, Ontario: Pearson
Canada.
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