Tony Heish at Zappos
Case Study Analysis Graphic Organizer
Concerns Fundamental Management
Issue you see related to the
topic
What are the pertinent  High Employee
facts in the case? attrition rate.
 Holacracy, imposed
without planning.
 Company employee
size was increasing
rapidly, and
Holacracy is not
suitable for large
organization.
What is/are the primary  Sudden emphasis on
problem (s) and the cause shift to Holacracy to
(s)? improve efficiency is
not welcomed by
employees.
What are the alternatives
for action?
What readings or other
research helped you come
to conclusions on the
topics?
Evidence from the case and class to support your Recommended Solution to
diagnosis the issue
 14% of 1443 employees took up Tony’s offer
to quit and take the severance package.
 20% of them were from technical department
which was a big blow for the server transition.
 Employees had to research about their salary
for increment or promotion.
 Employees were given an offer to either adapt
to Holacracy and self-management or either
quit and accept the severance package.
 In Holacracy each response whether logical or
emotional is handled without supervision,
which might not be suitable for all.
Training should be
provided (like the
employees received before
joining Zappos), to
encourage and make them
comfortable with
Holacracy.
https://www.investopedia.com/terms/h/holacracy.asp
https://www.resumeble.com/career-advice/what-do-
you-know-about-holacracy
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