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Unit 3: Organizations and Behaviour

Date: 18th April 19, 2014

Abul Hasnath

Table of Contents

Introduction
Organizational Behaviour studies the dynamics of an organization with references to ways it operates and how it treats its core resources-its people. This assignment analyzes the case of Zappos which was recently taken over by Amazon although operational independence was maintained. The previous owner of the organization Mr. Hsieh is still the CEO of the organization and runs it according to his independence. The organization famous for its unique culture and work atmosphere is heavily analyzed in this assignment using all the theories of Organizational Behaviour that was learnt during the course.
Task 1
1A: Advantages and Disadvantages of Organizational Structure to Zappos
A hierarchical structure is commonly referred to as a pyramid structure. Except for the CEO all other employees would be a subordinate to someone else inside the organization. Therefore almost employees at all levels answer to a particular individual and have subordinates under them except for the top position, which is usually known as the CEO and is not anybody’s subordinate, and the bottom level where the employees do not have any subordinates and usually form the base staff. Due to the pyramid structure the bottom level employees are the most in number.
The advantages of such a structure to Zappos would include
Obvious Authority: The hierarchical structure would give the employees at Zappos a clear understanding of the division of authority within the organization. The roles of the managers and employees are fixed and stated. They would know who to report to with problems thus avoiding much of the miscommunication. Every individual would also know their own authorities within the organization who they are responsible for.
Increased Specialization within the Organization: Zappos would be able to hire managers and employees based on their



Bibliography: Connor, S. (2013, February 8). Amazon Unpacked. Retrieved from Financial Times: http://www.ft.com/cms/s/2/ed6a985c-70bd-11e2-85d0-00144feab49a.html#slide0 Evans, J. (2013, August 10). The Future of Work: Amazon vs. Zappos. Retrieved from TechCrunch: http://techcrunch.com/2013/08/10/the-manichaean-labors/ Kreitner, R., & Kinicki, A. (2008). Organizational Behaviour. New York: McGraw Hill. Mahapatra, L. (2013, July 26). Amazon.com Has the Second Highest Employee Turnover of All Fortune 500 Companies. Retrieved from International Business Times: http://www.ibtimes.com/amazoncom-has-second-highest-employee-turnover-all-fortune-500-companies-1361257 Meehan, C. L. (n.d.). Flat vs. Hiearchical Organization. Retrieved from Chron: http://smallbusiness.chron.com/flat-vs-hierarchical-organizational-structure-724.html Robbins, S. P., & Judge, T. A. (2012). Organization Behaviour. New Jersey: Prentice Hall. Williams, S. (2013, June 5). This is One Incredible CEO. Retrieved from Fool.com: http://www.fool.com/investing/general/2013/06/05/this-is-one-incredible-ceo-29.aspx Zweni, T. (2004). AN ASSESSMENT OF THE IMPACT OF ORGANISATIONAL RESTRUCTURING ON THE MORALE OF EMPLOYEES. Port Elizabeth: Nelson Mandela Metropolitan University.

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