MBA522 Unit 6 Case Study

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Anissa Corrales Park University MBA522: Organizational Behavior and Leadership Gregory Moore February 14th, 2024

Case Study 14.1: Zappos’ Organizational Culture Founded in 1999, Zappos began as a tiny online shoe business and has since expanded to become one of the most prosperous internet merchants in history. It is understandable why Amazon acquired them in 2009, just ten years after they first opened for business, given their stellar reputation among employees and customers alike. It's also not by coincidence; prior to taking responsibility, the Zappos leadership team underwent some difficult lessons and was ready to establish a culture they would be proud to be apart of. What was Tony Hsieh’s goal regarding organization culture when he became co- CEO of Zappos? Since joining Zappos as co-CEO, Tony Hsieh has worked to establish a corporate culture that prioritizes happiness, collaboration, and top-notch customer service, all while focusing on people-centered management methodologies. His goal was to create a work environment where staff members could be creative, have fun, and feel empowered all while providing exceptional customer care. Tony Hsieh began by identifying previous mistakes made by the Zappos company, as he recognized that employee happiness and the corporate culture had suffered as a result. From the start, he understood how crucial it was to create a solid and encouraging company culture. It's also acknowledged that Hsieh wanted to establish a distinctive business culture that extended beyond his online storefront. In his mind, Zappos was a customer-focused business that valued contentment and interpersonal relationships. Determining the fundamental beliefs, dispositions, and conduct that would mold the organization's character was necessary for this. Elite talent is drawn to and retained by companies with strong corporate cultures. Collaborating with those who have similar beliefs as them is desirable. The culture and mission should inspire them. Their goal is for their hard work to have an influence (O'Donnell, 2022). In

addition, Hsieh needed to recruit and hire the proper people for his team in order to achieve the desired culture. They went looking for staff members who were eager to serve others and willing to make constructive cultural contributions. Investing in employee training at Zappos was one strategy that greatly improved company culture. The company's principles and culture were instilled in addition to job-related skills during the training. Hsieh shifted funds to provide great customer service in place of making significant investments in conventional advertising. Tony Hsieh understood that a successful culture was essential to delivering the finest customer service. Customer experience is a top concern for the whole Zappos organization, not just a department, and every employee has to know this (Frampton, 2020). The strategy was to provide clients such a great experience that they will inevitably spread the word about the business. Evaluate how the functions of organizational culture are implemented at Zappos. The different roles that a culture plays within an organization, impacting behaviors, forming interactions amongst employees, and propelling the organization's success as a whole, are the functions of organizational culture. Clearly defining expectations and standards for employee behavior helped to establish a functional framework for Zappos' culture. Employee behavior was governed by a set of behavioral standards defined by the company's fundamental principles, which included providing great customer service, giving employees autonomy over decisions, and fostering an enjoyable and open work atmosphere. Strong employee dedication was encouraged by the culture of Zappos. The corporation made sure that its workers truly cared about the organization's objective by emphasizing the hiring process, and choosing people who shared its values and had a strong service ethic. When we hire people we do two sets of interviews. The hiring manager and his or her team will do the standard fit within the team, relevant experience, technical ability and so on. But then our HR department does a second set of

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interviews purely for culture fit (Rosenbaum, 2020). By encouraging staff members to think outside the box and take chances, Zappos' culture promoted creativity and change. The implementation of the "holacracy" model, which sought to do away with hierarchy and promote creativity, showed that the business was open to experimenting with other organizational structure concepts. Another key element of the Zappos culture is the adoption of holacracy, a management system that distributes power and authority across the organization (Paxton, 2023). What type of organizational culture does Zappos have? Explain your answer. It is possible to describe Zappos' unique corporate culture as a "Clan Culture." Zappos has created the Competing Values Framework, which emphasize the Clan Culture as one of four categories of organizational cultures. The Clan Culture is renowned for placing a strong focus on harmony, cooperation, candid communication, and a sense of family. The emphasis Zappos places on providing outstanding customer service is consistent with the principles of a Clan Culture. Workers are urged to put clients' needs first and offer exceptional experiences. The company's goal of providing "wow"-worthy customer service is representative of this customer- focused culture. Zappos' employee-centric philosophy is key to its success. Zappos gives its workers the freedom to own their responsibilities and make choices on their own. As part of a great workplace culture where team members are treated like family and given opportunities for both personal and professional advancement, Zappos also believes in investing in and empowering their employees. This approach keeps team members engaged and happy at work (Paxton, 2023). Employee loyalty, accountability, and a sense of ownership are all influenced by this empowerment. Zappos believes that providing exceptional customer service and fostering a healthy community are equally important.

References Paxton, R. (2023, June 6). The wow factor: Zappos and the company culture others want to copy . Strixus. https://strixus.com/entry/the-wow-factor-zappos-and-the-company-culture-others- want-to-copy-18202 Rosenbaum, S. (2020). The happiness culture: Zappos isn’t a company — it’s a mission. https://www.fastcompany.com/1657030/happiness-culture-zappos-isnt-company-its- mission O’Donnell, L. (2020). Company culture: Your competitive advantage . Great Place to Work. https://www.greatplacetowork.ca/en/articles/why-culture-is-your-real-competitive- advantage Frampton, S. (2020, March 13). How Zappos Customer Service WOWS customers to win . Chattermill. https://chattermill.com/blog/zappos-customer-service

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