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Zappos Project Essay

Zappos “Keep them happy” approach to business seems to be working. CEO Tony Hsieh believes that an office environment that employees enjoy is vital for company success. This ten-year-old company has more than 1,500 employees and sales recently topped $1billion. (Schremerhorn) 1. Describe Zappos’ organizational structure using the upside-down pyramid view. What does Zappos do to serve the company individuals at the top of the pyramid? 1a. Employees are first priority in Zappos upside-down pyramid, secondly are the customers, and third are managerial staff and leaders. 1b. to keep employees smiling, Zappos offers free employee lunches, in-house massages, and even a nap room.

There is concierge service and life coach on staff “Keep them happy.” (Schremerhorn) Although, Zappos have gained a lot of recognition for its success in using the upside-down pyramid, and gaining a competitive perspective on the competition. Southwest Airlines adopted and have applied the upside-down pyramid to their business for over 40 years. “With impressive results, Southwest has generated profits for 38 years in an industry notorious for losing money” (Blanchard)

2. Describe the Three Essential Managerial Skills and how the importance of each skill varies across organizational levels. What skills are most important to Tony? Which are most important to entry-level customer services employees? 2a. Technical Skills- Reflecting both an understanding of and a proficiency in a specialized field. Human Skills- Associated with a manager’s ability to work well with others, both as a member of a group and as a leader who gets things done through others. Conceptual Skills- Related to the ability to visualize the organization as w whole, discern interrelationships among organizational parts, and understand how the organization fits into the wider context to the industry, community, and world. 2b. Company culture, incorporating company values with employees’ personal values, empowering employees to embrace their diversity while flourishing in the workplace, weirdness is encouraged and having fun is job number one. 2c. Zappos Ten Core Values. (Quigley)

3. What likely effect do Zappos’ employee-focused programs have on workforce diversity? 3a. Inspires Chief Executive Officers and Management to hire and embrace diversity in the workforce by acknowledging and implementing company values along with employee’s personal values to better promote “company culture.”

Tony Hsieh’s unique way of implementing, maintaining, and enforcing Zappos core value system for the last 10 years. Successfully growing a company with shareholders and building a “$1 billion” company. While investing fun, weird, diversity, time, and revenue into shaping and molding and bringing the best out of employees merging the diverse values of each employee. I read while researching that each morning an employee logs into their system a fellow co-worker’s profile pops up and they are encouraged to read profile and familiarize with other employees. Zappos merged with Amazon. Com In Conclusion, research shows that the upside-down pyramid view that Zappos and Southwest Airlines incorporated into the core values of their businesses. Proved successful for the employees, customers and company a “happy employee, will focus on making happy customers” thus removing all limitations on the growth and opportunities for a business or company.


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