In such a manner they have to report to their line manager who tells them

In such a manner they have to report to their line

This preview shows page 3 - 6 out of 19 pages.

line manager who tells them precisely their task areas and how they should achieve them, sothey are not authorized to take decisions [ CITATION Hsi17 \l 1031 ].Based on a hierarchical framework, the communication flows from the top-levelmanagement to the subordinate departments and the respective employee. As a result,3
Background image
Strategic ChangeHolacracy at Zapposthere might be very probably a stagnation regarding innovation, and self-realization relatingto the employees [ CITATION Mor15 \l 1031 ]. According to Tara Everhart (2017) a conventional management hierarchy is characterized bythe employee who often seeks the approval from their boss. Therefore, they are probablyrestricted and do not exploit their individual performance capabilities. As a result, there is a lack regarding solution-oriented thinking and a lack of responsibility aswell by the employees. Such a hierarchical framework has a considerable need forimprovement regarding customer focus and employee emphasis as well. The main reason forthe radical organisational change was, that Hsieh feared that Zappos would evolve to abureaucratic organisation, with a lower level of passion. His aim was to strengthen theinternal cooperation with a sustainable and less complex management structure by removingstrict hierarchical structures in an autonomous framework. A further argument for such amajor change towards a flat organisational structure could be the implementation of astructure that allows employees to use their individual capabilities in a pleasant workingenvironment. Furthermore, such a model might be a crucial key driver to encourageuncommon collaborations to strengthen the degree of creativity and communication[ CITATION Lam16 \l 1031 ]. In contrast, the new Holacracy framework removes the high force and high level of authorityfrom the top management and its top-down hierarchical structure. As a consequence, thereare significant leaner and shorter decision paths without any limitations relating to anindividual employee. Such a working environment might liberate an employee in theirworking conditions, so that they are able to realize their full working potential. Based on thisframework, each employee is able to notice their individual positive impact and influenceregarding the entire organisation (Robertson, 2017). This might improve the motivation andthe degree of identification in relation to the organisation. In a traditional hierarchical organisation, every employee has his defined task area. Theindividual job descriptions are not precisely described and rarely updated with respect to theindividual employee. In comparison, in a Holacracy framework has each employee versatileroles which are constantly updated. The decision-making independence is in this modeldivided into various roles and teams. In a Holacratic organisation are transparent rulesestablished, so each individual employee has to follow the visible rules. These rules are very4
Background image
Strategic ChangeHolacracy at Zapposflexible and changeable if it is necessary. In comparison to a hierarchical framework, the
Background image
Image of page 6

You've reached the end of your free preview.

Want to read all 19 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes