Question

One of Tony Hsieh's most important roles now is to act as a cultural leader for Zappos. Which of the following would be the best ways for Hsieh to guide the culture at Zappos in light of the switch to Holacracy?

A. Acknowledge that Holacracy will be an experiment in that Zappos may move back to the traditional hierarchy
B. Communicate directly to employees about the changes and expectations.
C. Relinquish his title as CEO in response to the change to a boss-less organization.
D. Listen to employees concerns and be willing to change some aspects of Holacracy.

Answer 1

Answer:

The correct answer is: D. Listen to employees concerns and be willing to change some aspects of Holacracy.

Explanation:

Holocracy refers to a management style where top-down or hierarchical management is replaced with a management style, where power and authority is equally distributed between teams and individuals in an organization. Holocracy is beneficial for organizations since it engages and motivates individuals and teams more than a hierarchical management style- where they have less power and authority. This in turn engages employees  to produce favorable outcomes, while remaining aligned with their organization's missions.

The best way for Hsieh to guide the culture at Zappos in light of the switch to Holacracy would be to listen to employees' concerns and be willing to change some aspects of Holacracy. This is the best approach as it resonates with a holacratic management style, and gives employees the power and authority to bring up their concerns so that the switch  to Holacracy at Zappos goes smoothly.