Question

Using your own organisation, an organisation you are familiar with or have researched, carry out an investigation into management strategy. Describe how it is applied and how other strategies could be implemented. Note the assignment tasks and format below and bring into your discussions the findings of additional research outside of the learning packages. Assessment tasks Write a well-informed report, of approximately 1000 words +/- 10%, which describes and critically analyses the findings of your investigation. Make recommendations, or give alternative suggestions where appropriate, for improving the management strategy in your case study. The numbers in brackets refer to the maximum marks available for each section.

Answer 1

Let's consider the Holacracy management structure at Zappos (online shoe retailer; Amazon) for this question.

The management startegy and its application-

Holacracy (developed in 2007, by Brian Robertson) is all about self-management/self-organisation. The idea is to eliminate job titles and workplace hierarchies - to achieve an absolutely flat work structure where there are no bosses. Everyone works at the same level and has equal powers to innovate, make changes, and voice opinions.

Holacracy was implemented at Zappos in 2013-14, based on the idea that the company was losing focus of customer service as it grew and formed hierarchies. The company felt it became slow to respond to customer feedback due to the various hierarchical layers that had to be traversed through to get things done. Holacracy allows employees to voluntarily act on customer feedback, without worrying about structural formalities/procedures, and providing quick service thereby.

Results of applying Holacracy to Zappos-

A management structure with no hierarchy or role titles is essentially confusing and disorienting. Empowering everybody in the same capacity can lead to a lot of obscurity in work matters. People become confused on what's required of them - who to look to for consultation, how to do things etc. Also, it leads to insecurity regarding rewards.

With hierarchies things are more or less predictable - i.e. it's easy to understand responsibilities and authorities - and easy thereby, to link compensation and other benefits to the job. However, when structures are flattened to the ground, employees lose motivation - because they have no ladder to climb!

In the aftermath of the application of Holacracy, Zappos saw a huge turnover of 30% in 2015 and a further 18% in 2016 (- something that became popular as the "Zappos Exodus"). Confused employees chose to leave rather than work without bosses!

Alternatives to Halocracy-

It's argued that instead of empowering people, Holacracy empowers processes. There's no clarity on issues pertaining to conflict-resolution, project management, performance evaluation and improvement etc.

Given the flaws of Halocracy, corporations are advised not to adopt it as a whole. Only part application, based on need, is good enough. There are many companies that do this. For instance, Procter and Gamble has a complex matrix structure that integrates its various brand categories and functions around the world. However, at the same time, it also has a big open-innovation program, wherein its employees organize themselves in teams to solve problems for the company.

Self-management (Halocracy) is best applied in fast changing business environments where the advantages of making quick adjustments far outweigh the costs. It is more for start ups than reliability-driven industries like Banking, Healthcare etc.