Organizational Structure: Zappos
The Organalizational Structure of Zappos.com
Mark Douanglathay
MGT230
January 10, 2013
Susan Cannon
The Organizational Structure of Zappos.com The organizational structure of Zappos.com is revered as one of Americas’ most innovative corporate cultures. The unique structure of this company has been so successful that they have a department for business-to-business consultations that assist other companies interested in adopting the model into their own organization. From a struggling start-up business to a $1.2 billion merger with Amazon.com, the company has remained true to its value of “delivering WOW through service” not only to its customers but also to its employees as well. Although there are hierarchical levels, there is a sense of transparency that alleviates the stress of authority figures. Though this type of structure may have worked for Zappos, it is not the only type of structure to generate success and its success is not based on structure alone.
In terms of organizational structure, Zappos would be considered a flat decentralized organization. When an issue surfaces, the employee closest the problem is empowered to make a decision (Eckel, 2011). This creates flexibility for the company so that they can respond to any issues that arise in a timely manner. The integration of the differentiated units within the company is so streamlined that teams can be mixed and reformed occasionally without a hitch. CEO Tony Hsieh wrote a book about delivering happiness and incorporated its practices into the company model. To create customer loyalty, Hsieh established a work environment that emphasizes team building and family as a priority. The lines of authority are far from blurred here. Senior managers’ cubicles blend in with the workforce and are referred to as coaches who help solve problems instead of barking out orders.
Alternatively, a company such as Apple thrives in a tall organizational structure with centralized decision made from the top
Mark Douanglathay
MGT230
January 10, 2013
Susan Cannon
The Organizational Structure of Zappos.com The organizational structure of Zappos.com is revered as one of Americas’ most innovative corporate cultures. The unique structure of this company has been so successful that they have a department for business-to-business consultations that assist other companies interested in adopting the model into their own organization. From a struggling start-up business to a $1.2 billion merger with Amazon.com, the company has remained true to its value of “delivering WOW through service” not only to its customers but also to its employees as well. Although there are hierarchical levels, there is a sense of transparency that alleviates the stress of authority figures. Though this type of structure may have worked for Zappos, it is not the only type of structure to generate success and its success is not based on structure alone.
In terms of organizational structure, Zappos would be considered a flat decentralized organization. When an issue surfaces, the employee closest the problem is empowered to make a decision (Eckel, 2011). This creates flexibility for the company so that they can respond to any issues that arise in a timely manner. The integration of the differentiated units within the company is so streamlined that teams can be mixed and reformed occasionally without a hitch. CEO Tony Hsieh wrote a book about delivering happiness and incorporated its practices into the company model. To create customer loyalty, Hsieh established a work environment that emphasizes team building and family as a priority. The lines of authority are far from blurred here. Senior managers’ cubicles blend in with the workforce and are referred to as coaches who help solve problems instead of barking out orders.
Alternatively, a company such as Apple thrives in a tall organizational structure with centralized decision made from the top
References: Eckel, B. (2011). The Cult of Zappos. Retrieved from http://www.reinventing-business.com/2011/02/cult-of-zappos.html Lashinsky, A. (2011). How Apple works: Inside the world 's biggest startup. Retrieved from http://tech.fortune.cnn.com/2011/08/25/how-apple-works-inside-the-worlds-biggest-startup/ Frenz, R. (2013). Google 's Organizational Structure. Retrieved from http://www.ehow.com/about_6692920_google_s-organizational-structure.html The World of Organizational. (n.d.). Retrieved from http://highered.mcgraw-hill.com/sites/dl/free/0078029368/946481/Sample_Chapter.pdf