Its a recipe for permanent revolution a revolution

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new theory of organizations that will motivate him. It’s a recipe for permanent revolution, arevolution that is driven, above all, by his instincts and intuitions. Maybe he just gets bored. But the disconnections, miscommunications, and “executive interruptions” described byMurch, Coy, and Van Beek suggest that Hsieh’s relentless organizational experimentation mayno longer be as sustainable as it once was, when Zappos was a much smaller company. Whenthe CEO becomes a distant figure, sheer force of personality and charisma cease to be enoughto motivate hundreds of employees as they weather wave after wave of perpetualorganizational flux. In June, I contacted Murch to see if things were beginning to settle down at work. “No oneknows how to get things done anymore,” she wrote to me in an email. “It’s easy when there arebosses with budgets. Now we still don’t have any answers to how budgets are going to work,and no one is willing to make any decisions because they don’t know if they have the authorityto do so. My Zappos life is not very productive right now and I hate that. Hopefully things willget better soon.” When I followed up in September, Murch told me things were slowly improving, or at leastthat people were figuring out how to get their work done. When I asked if anything had beendecided about how compensation was going to be set, however, she sounded less enthusiastic.
6/4/16, 2:09 PMFirst, Let’s Get Rid of All the Bosses | New RepublicPage 23 of 26In fact, she sounded pretty frustrated. Increasingly, she said, compensation at Zappos wasbeing tied to something called “badges” and a confusing new internal currency called “PeoplePoints.” Everyone at Zappos has 100 People Points that add up, roughly, to the percentage oftime they spend on all of their roles. The badging system seems to be modeled on scouting merit badges. Employees can earnbadges for attending workshops or events. These are “suit up-show up” badges, Murch said.And badges exist for a variety of accomplishments, which are created mostly by employeesthemselves, or perhaps by lead links in particular circles, or by Hsieh. Then there are thecompensation badges, and these, she said, were getting a lot of attention right then, forobvious reasons. “People are starting to go, OK, I’m ready for a raise, what do I have to do?” One thing Zapponians now have to do is their own research about salaries, to find out themarket rate for jobs at other companies that correspond to their roles. In a normalcorporation, such things are taken care of by the human resources department. Not at Zappos,not anymore. Instead, if Murch wants a raise, she has to do all the research into what she’sworth, create a badge, come up with qualifications for receiving the badge, and then design theactual lookof the badge. Then it all has to be approved by the People Pool & Comp circle. And

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Term
Winter
Professor
Mathys,Nicholas
Tags
Tony Hsieh

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