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Zappos Case: Application of Decision-Making, Creativity, and Innovations Model Research Paper

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Updated: Jun 21st, 2022

Organizational change involves the actions and decisions that alter the way an organization functions. It alters the major parts of an organization, such as underlying technologies, culture, infrastructure, or mode of operation. The change occurs so as to improve efficiency and effectiveness in how the organization operates. Some decisions triggering change originate either internally or externally. Zappos initiated change by taking on a new management structure called Holacracy (Kumar & Mukherjee, 2018). This system removes managers from the entire corporate hierarchy structure in favor of philosophical concepts and self-directed leadership.

The first step was to propose a solution that could keep the business going while managing change where leadership was based on an individual rather than managers. The Amazon-owned online store sought innovations where everyone in the organization is empowered. In the past, all decision-making in the organization was centralized. Zappos applied the decision-making, creativity, and innovations model in its change management, which is a delicate process, and inadequate application of proper models may lead to adverse effects on the organization (Tran, 2017). The innovativeness of the company ensured that it improved its performance and would survive any eventuality, from the 2008 financial crisis to the COVID-19 pandemic crisis.

Tony Hsieh, the then chief executive officer (CEO) of Zappos, realized that the best way to improve the performance of the company was to remove all bosses from it. He envisioned everyone becoming their own boss. He would, therefore, champion the implementation of the innovative concept called Holacracy. Many people in the company and outside did not understand his motives at first. However, they began understanding him as the concept gained shape and implementation progressed (Heinitz et al., 2018). The concept would, later on, become a game-changer with many players in the private sector having it implemented.

The leadership, therefore, thought of an innovative way every employee would be involved in decision making without creating problems. Hsieh’s decision to involve everyone in running the company would eliminate any challenges that came as a result of the absence of a CEO. It would assist in removing any vacuum in decision-making as every person in the company would be a boss (Velinov et al., 2018). Holacracy made headlines as the only solution the company could apply to eliminate one-man shows in such a large organization. The leadership also called on the employees to apply intrinsic motivation in managing the transition. Intrinsic motivation is critical in ensuring that employees assist in the change management because it would lead to their personal benefit. Failure to support the organization fully during the process would mean loss of jobs, revenues, customers, and other significant components of the organization (Alhidari, 2017). The model assisted the organization in transitioning seamlessly into an online retail store that is currently serving its customers well.

In conclusion, proper management of organizational change is critical in ensuring that the business improves its efficiency and effectiveness. It also assists in facilitating change that avoids negatives impacts on the business. The application of relevant organizational behavior models ensured a perfect shift and also acted as an example to other players in the industry. It is, therefore, prudent for leaders to analyze and understand the models and theory of organizational behavior, which can assist during times of crisis. Many of the external causes of organizational change are inevitable, and the firm should always be prepared for any eventuality.

References

Alhidari, A. (2017). Proactive communication mode (PMC) of Zappos: The success of consumer engagement. British Journal of Economics, Management & Trade, 16(2), 1-9.

Heinitz, K., Lorenz, T., Schulze, D., & Schorlemmer, J. (2018). Positive organizational behavior: Longitudinal effects on subjective well-being. PLOS ONE, 13(6), 18-24. Web.

Kumar S., V., & Mukherjee, S. (2018). Holacracy – the future of organizing? The case of Zappos. Human Resource Management International Digest, 26(7), 12-15. Web.

Tran, S. K. (2017). GOOGLE: A reflection of culture, leader, and management. International Journal of Corporate Social Responsibility, 2(1), 5-7. Web.

Velinov, E., Vassilev, V., & Denisov, I. (2018). Holacracy and obliquity: Contingency management approaches in organizing companies. Problems and Perspectives in Management, 16(1), 330-335.

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IvyPanda. "Zappos Case: Application of Decision-Making, Creativity, and Innovations Model." June 21, 2022. https://ivypanda.com/essays/zappos-case-application-of-decision-making-creativity-and-innovations-model/.

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IvyPanda. 2022. "Zappos Case: Application of Decision-Making, Creativity, and Innovations Model." June 21, 2022. https://ivypanda.com/essays/zappos-case-application-of-decision-making-creativity-and-innovations-model/.

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IvyPanda. (2022) 'Zappos Case: Application of Decision-Making, Creativity, and Innovations Model'. 21 June.

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