Isnt it time work, worked for everyone? "Really what we're trying to do is turn each employee into a mini entrepreneur who has the ability to sense ideas and do something about it," he says. Posted by Editor, HRreview | Jan 31, 2014 | HR Strategy News | 2. He went on to explain that building the great culture at Zappos starts with the company's hiring process. According to former Zappos HR Director Rebecca Henry, the recruitment process is more like a courtship than a HR process. As a result, the Zappos company culture has remained just as innovative, creative, and quirky as it has always been. Find out more about, 54% of The Zappos Family employees would recommend working there to a friend, Get started with your Free Employer Profile, people that get hired are mostly pretty great. Zappos sets itself apart from its competitors through a culture devoted to making its employees happy. Companies that want their culture to reflect their values and branding must first commit to their core values. At Zappos, it's her job to identify problems and goals in her job then bring them to her circle to address. The other 97% take the job. John Bunch, who oversees holacracy at Zappos, "Instead of analyzing it from the top down, we just start where the work is," Labus says. Is the holacratic culture inclusive enough to accept diversity? 54% of employees would recommend working at, According to anonymously submitted Glassdoor reviews, The Zappos Family employees rate their compensation and benefits as 4.1 out of 5. The companys Q4 All Hands meeting in November was aptly-themed Gone Wild: one female employee The Role Marketplace can also help with employees seeking raises or those who might want to transition departments down the line, by helping employees earn badges. By Chet Kapoor, Chairman & CEO of DataStax. Judging from their bio (a service company that just happens to sell ________.), its evident that Zappos wants to be known as much more than just your average shoe retailer, and they are.. In his book, Hsieh argues how company culture and employee happiness are sustainable means to having a business of passion, profits and purpose. I headed to Glassdoor to see what former and current employees have to say about Zappos company culture. There is also room for cultural considerations. :) Or in other words, we use Holacracy to clearly state our work, our accountabilities, and our purposes. These badges equate to skills, so theoretically, you could set your sights on a specific job, figure out the requirements, and earn those badges to make for an easier transfer. Aside from Holacracy, the reviews for Zappos culture make it one of the best places to work in the US. Zappos eliminated managers and embraced a system of self-governance known as holacracy. WebA strong culture means lower employee burnout and therefore, lower turnover. This is less convenient for employees than having several exits, but this strategy increases the number of positive interactions employees have with each other as they enter and leave work. How refreshing is that? Anyone who wasnt interested in going forward without a more traditional structure was welcomed to quit by April 30, 2015 with three months pay. That part is fairly easy. The only way to maintain success is constant evolution. the benefits are unmatched, none really, outside of the recent layoffs, Management is a mess and they are fumbling thru everything, Campus has food and subsidized cafe and cool stuff Gympass Fun events for employees and families Generally mellow environment, Lots of layoffs in the last year Very clicky. John Bunch oversees the implementation of holacracy at Zappos. "We don't have to put someone on hold and ask permission," says the former customer service agent, who is now a tour guide at the company. Holacracy may sound like a recipe for chaos. Now hes running the show, thanks in part to a keen understanding of how IT can. Leadership often thinks highly of mediocre employees who are apathetic, do very little, and are purposely unhelpful to others they don't like. However, they are reports they are using a decentralised approach, but just not specifically Holacracy in its pure form. Required fields are marked *. These solutions cause a short-term loss in service of long-term growth fueled by employee happiness and productivity. In their view, the engagement levels of the workforce will be higher if all the employees are equally responsible and empowered. Hire ups refuse to get back to you, HR is a joke they have had lots of complaints but do nothing, Cool culture and parties and its easy to get caught up with the free food and great benefits but its actually a super toxic environment. Content labeled as the Expert Forum is produced and managed by Newsweek Expert Forum, a fee based, invitation only membership community. Because it's just the right thing to do. Employees would have agency to make decisions, quickening resolution times and providing teams with a sense of ownership of their work and assuredly a feeling that they are trusted and their opinions matter within the company. Want your culture to have just as much impact? As a result, the revolution did not survive a few months. The focus isnt so much on titles and position within the company, but the corporate goals and how to achieve success. Once a saver, always a saver: Warren Buffett says generational wealth isnt what it used to be in his annual letter Subprime auto lender folds as more Americans fall behind on car payments, CA Notice at Collection and Privacy Notice, Do Not Sell/Share My Personal Information. One big question: if you transition to a holacracy, how do you make your pay system relfect more equitable responsibility, especially if your opening position is lots of different people on lots of different rates of pay. 54% of employees would recommend working at The Zappos Family to a friend and 30% have a positive outlook for the business. Whats the ROI on hugging your mom?". But, even with 210 opting to leave Zappos, there are another 1,000 plus employees who chose to stay. Inspired by Arthur Koestlers works and endorsed by Brian Robertson (founder of Ternary Software), holacracy envisions a scenario where accountability and leadership are equally distributed among the workforce. WebBoth cultural and cross-cultural studies have their own advantages and disadvantages. It was a new venture for us and we had to overcome a lot of hurdles to get to where we are. We use cookies to improve our website experience. Like a proprietary piece of software written on top of Linux. This rating has decreased by -6% over the last 12 months. A particularly important milestone not included in the list perhaps because it is not a milestone or destination but rather an ongoing goal is their aim to show the world of consumers and businesses that they do not have to choose between people and profits. Evaluating, promoting and firing employees based on their alignment or misalignment with the brand values is the final step. Shoe firm Zappos gets a reboot with no managers and no job titles. To quote Tony Hsieh, "Just because you cant measure the ROI of something doesnt mean you shouldnt do it. hide caption. If the answer was no, they wouldnt hire that individual. And performance reviews still exist, sort of. Simple in theory, but everyone has to truly commit for it to work! But that is not the case when it comes to Zappos. At Zappos, those who didn't wish to participate could take a buyout; 14 percent of the company's 1,600 employees took the offer. Zappos.com tour guide Erika Newman (right) shows off the ball pit in the human resources department of the company's Las Vegas headquarters. The test here is to understand if people are truly committed to the company. It shouldn't be a struggle to find a balance between life and work where you are truly fulfilled and happy. "But I realized that's not what we're doing here.". Participants call out agenda items known as "tensions" in holacratic parlance in the form of problems, projects or new ideas, which get added to a list that's projected onto a big screen. What is Zapposs company culture? What are your thoughts on holacracy, please add your comments below? document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Your email address will not be published. Zappos.com tour guide Erika Newman (right) shows off the ball pit in the human resources department of the company's Las Vegas headquarters. Zappos company culture hasnt been the same since. A Halloween parade, a parody dance video in the making and where to place a human-sized hamster wheel on campus all make it on the list. Zappos and REI Offer Examples of What To Do On the other hand, Zappos is a shining example of a company that puts its culture first, and then the external branding For more infomation, review our. For example, in its early days, Zappos built friendship into the hiring process: When evaluating potential employees, the hiring team considered if they would enjoy spending time with the potential employee outside of work. Pros & Cons are excerpts from user reviews. However, Holacracy is built to focus on the work, rather than the people, while Zappos is *all* about the people. Values are more than just words, they're a way of life. Article by Sergio Russo, HRreview journalist. It may seem obvious that the way a company is perceived within should match how it's perceived without; however, company culture is often considered a function of HR, while branding is left to the marketing department. By all means, adopting any new way of working is not going to be an easy ride, and Holacracy itself is not perfect. She also explains the importance of cultivating "PEC," personal emotional connections, with customers and sending some of them gifts of cookies and flowers. Like this article? Native Hawaiian or Other Pacific Islander, to work with and you can make lots of friends. This point has been illustrated by Robertson, who used the analogy of the human body where the employees represent the cells, each one with a specific task and in touch with the rest of body. Its up to the specific team, or circle, to decide if they want to perform what Zappos calls, culture performance reviews.. While holacracy has definitely made the Zappos company culture more dynamic, it has room for further advancement. Zappos is still using Holacracy and we currently have no plans to change that. Shortform book guide to "Delivering Happiness", Sports Writing Tips: Avoid Doing These 2 Things, Commitment Culture: A Boost to Workplace Productivity, 3 Email Management Strategies to Stay Focused on Work, How to Be an Artist: 4 Steps to Creative Success. "I found myself at times wanting to command and control things to be a specific way," he says. It transforms outdated command hierarchies into agile, self-organizing networks.. WebLoved Working at Zappos. Employees that feel supported by their employers are happier and more motivated to work hard. Were still collecting data to inform categories such as Age, Disability, Sexual Orientation, and Veteran Status. The online retailer, known for its remarkable business achievements and its unconventional culture, decided last November to adopt an operating system which will reset all job roles and redistribute power evenly among its workforce. High level, you have less layers between your employees and your customers. According to Zappos, they are striving to deliver happiness through the four Cs: Commerce, Customer Service, Company Culture and Community. The employees on the front lines of a department are usually the best equipped to understand and handle that departments problems. According to reviews on Glassdoor, employees commonly mention the pros of working at The Zappos Family to be career development, culture, benefits and the cons to be senior leadership, management, compensation. Past epic party themes have ranged from Mardi Gras and old-school hip-hop to a Hawaiian luau at a waterpark. Hsieh explains that support means recognizing whats best for your employees happiness and productivity and providing for that need, even if it means losing money in the short term. Zappos The Culture Everyone Wants to Copy. Zappos made headlines in 2013 when it announced plans to transition to holacracy a management-free corporate structure. "And when they don't do that well, we get to be angry with them and blame them and hide behind them.". document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Designed by Elegant Themes | Powered by WordPress, Hilton Worldwide pledges to open doors for 1 million young people by 2019, Until senior positions include flexibility for women, the 50/50 split is unattainable, says Dr. Linda Shaw. fulfilled, Hsiehs idea still serves as the foundation and one of the core values of Zappos company culture today. Employees were shocked and frustrated by the numerous mandates, the endless meetings, and the confusion about who did what. Eliminating management, it turns out, bred chaos. The units above are composed of overlapping groups of employees which hold periodic meetings and assume direct responsibility of leading the company and ensuring its governance. According to former CEO Tony Hsieh, only 3% of people take the money. The CEO of Zappos believes in creating an informal and fun corporate culture. But really, companies should focus Each has had its own twists and tricks to surprise and delight partygoers. WebNEW YORK, May 26, 2010 - Zappos CEO Tony Hsieh describes how he builds "company culture" at his business in New York on May 26, 2010. In 2009, Amazon purchased Zappos for $1.2 billion. A companys culture and a companys brand are really just two sides of the same coin. The key is communicating to employees that we want folks to find the intersection between what they are passionate about, good at, fulfills the purpose of the company, and is in the best interest of Zappos. What Reingold, Americas preeminent journalist writing about management, reveals is the depths of the eccentricity Hsieh has promulgated on his Las Vegas brainchild. There is a huge encouragement to self organize and be more creative among workgroups, which led to greater adaptability. And, although arguably the company itself needs to establish a company culture, it is the people themselves, after all, that will dictate the tone, morale and values of any successful company. We still have leaders and a lot of people associate leadership with management. A former underwriter told The New York Times the office was at one time comparable to a "frat house.". We believe that if we get the culture right, then most of the other stuff like delivering great customer service or building a long-term enduring brand or business will be a natural byproduct. Our culture would not be what it is today without Zapponians past and present. From customer service to its evolving employee structures, Zappos believes in order to attain long term success, evolution is essential. Although not the first example of a business seeking alternative solutions to the traditional, top-down hierarchical organisation, Zappos revolution raises interest as one of the few (if not the only) instances of a medium-large firm transitioning to a flatter organisational structure. While many companies define their key values, they don't actually embody them. Remaking Vegas In A Tech Billionaire's Image: Will It Last. for amount of energy employees are asked to put into their work, Coming soon! Zappos began as an online shoe retailer named ShoeSite.com in 1999, founded by Nick Swinmum. Zappos, which is owned by Amazon, started shifting its system two years ago. As one example, the e-mail mentioned that we no longer had a need for "people managers", because Holacracy uses "Lead Links" in their place. It is well known by now that Hsieh is pursuing a no-management philosophy at Zappos called holacracy and that a significant percentage of the companys employeesReingold, tongue in cheek, calls them apostateshave left as a result. A small group of Zapponians went to a 2-day offsite to further explore the potential of Holacracy to help decide if it was right for Zappos. In the book Zappos prides itself on becoming a company founded entirely on community, fun, and a strong company culture made up of loyal, hardworking, and like-minded employees. Based on their belief that itispossible for customers and employees to be simultaneously satisfiedandfulfilled, Hsiehs idea still serves as the foundation and one of the core values of Zappos company culture today. By working as a team, by partnering, you are setting the stage for success! The hard part, is committing to the values once they are set. According to Robertson, this role gives employees a natural advantage on senior managers who, being concerned with the broader picture, miss the vital details and are out of joint. Based on their belief that it, possible for customers and employees to be simultaneously satisfied. This is the era of trust relations, in which brands must be congruent within and without to build trust with their audiences. Tony officially announced the plan to use Holacracy at our company-wide All Hands Meeting. But it remains clear that the Zappos company culture will continue to insist on novelty and change in the process. As we continue to grow, we strive to ensure that our culture remains alive and well. Read on to learn more about Zapposs culture and its principles. If you havent yet, you will soon be learning all about Holacracy. Should remote workers receive lower salaries? He has made it this far, and while his ideas might be extreme its not like the rest of the business world has exactly nailed managerial excellence. Copyright 2023 IDG Communications, Inc. Definitely not. for $1.2 billion in 2009, Hsieh published his best seller book, A particularly important milestone not included in the list perhaps because it is not a milestone or destination but rather an ongoing goal is their aim to show the world of consumers and businesses that they do not have to choose between people and profits. Early on, he says, he struggled to get rid of his own managerial impulses. FORTUNE may receive compensation for some links to products and services on this website. This may all sound extreme, but when you take into account how much time and money goes into recruitment, and how much Zappos have invested in their company culture, they are taking no risks of adopting a bad hire. Living them. Workplace Rewards for a Well-behaved Culture it doesnt work! In 2016, Forbes magazine issued an article stating that although Holacracy obviously had some flaws, it most likely will save the future of business. The result was not only innovative and exciting but also created a loyal consumer following. New recruits are offered $3,000 to leave the company. Hiring the right people is the first step. Terms & Conditions. Company values are unequivocally essential in any successful business and are a primary step a founder should make in establishing their business model., Lived company values contribute to how a business is viewed not only among the public but inhouse.. The old Zappos was such a great place to work but not anymore. Even these brief positive interactions encourage the formation of friendships. Through this section, it will be perfectly highlighted whether Zappos has a high level of employee engagement or not. Since people dont have to wait in line for promotions, it gives everyone the opportunity to demonstrate their ability to manage, lead, and direct others to success. 5 In 2004, the idea of the Zappos culture book . Rather than focusing on a specific product and its value only, Zappos takes a different approach to success. All Rights Reserved. Get started by entering your email address below. Everyone has equal say, and employees are evaluated and rewarded by peers, instead of by a boss. These categories include the emotional connection, ongoing rapport, ability to address needs, and the wow experience provided. It is a common misconception that in order to be self-managed people can do whatever they want. In addition, Hsieh says Zappos designed its building so every employee must funnel through the lobby to enter or exit. Yes, theyre asked if they want to leave! According to Zappos, they are striving to deliver happiness through the four Cs: Commerce, Customer Service, Company Culture and Community. We have 2 annual parties at Zappos. Departments now function as groups, or Zappos origin story begins in 1999, in the era of the so-called Y2K bug which, at the time, threatened peoples way of life as they knew it back then. Get Data Sheet, Fortunes technology newsletter. Here to stay are the days when brands must align their storytelling and "story-doing," which starts withinand at the top, with the company's leader. As a result, Hsieh has introduced a marketplace mentality in the Zappos company culture. Defined as a setup where authority and decision-making are decentralised to self-managing units, holacracy borrows its name from a Greek term (holons) meaning whole. Sams knows firsthand how useful this new structure can be in helping shape and mold your own career. The Happiness Experience Form grade the Zappos customer service experiences. We will be providing you with insight into our own successes and struggles, as well as what we have learned over the years. 100% (1 rating) Zappos consciously creates and reinforces its corporate culture. Find a Great First Job to Jumpstart Your Career, Getting a Job Is Tough; This Guide Makes it Easier, Climb the Ladder With These Proven Promotion Tips, A Guide to Negotiating the Salary You Deserve. Hsieh believes that by making its employees happy, Zappos will naturally fulfill its other objectives of great customer service and continued success. Sams likens it to your college major, where you typically take the majority of courses in your main discipline, but there is always room to take a few classes in other areas, ones that you may be particularly passionate about. In addition, employees that are friends work better together during difficult times. Work can be fun! Aside from it arguably being the most publicly well-known, it is one of the only pre-built, out-of-the-box options that any organization can implement, regardless of size, sector, or industry. For more on Zappos boss Tony Hsieh, check out this weeks Bold Leader Spotlight. This year, we invited our vendors to run away with us to the Untamed Circus.". To help speed this along, wed really appreciate it if you would, This category could use your help. "We want employees that believe in our long-term vision and want to be a part of our culture," Hsieh wrote. It's the responsibility of every employee to represent and foster culture. So, why did we go with Holacracy? Were a little short on data, but you can help. Read this story. Of course, you can try to make people see your brand a certain way; but eventually, if the employee experience and customer experience don't match, these discrepancies will come to light. The company soon changed its name to Zappos after venture capitalists Hsieh and Alfred Lin came on board. Is your careers site driving away candidates? Over the course of a couple of years, Zappos has slowly weaned the entire company off the traditional concept of bosses. Family spirit, amazing and fun place to work. Glassdoor has 614 The Zappos Family reviews submitted anonymously by The Zappos Family employees. There are a lot of companies self-managing in a lot of different ways, but most of them created and developed their own unique method and honed it over several years. Weve given all 1,300 employees the opportunity to make structural changes to their job and their team to help move the business forward, says Jordan Sams, from Zappos Holacracy Implementation Team. Category could use your help with their audiences Family employees opting to leave decide if want!, Amazon purchased Zappos for $ 1.2 billion must be congruent within and without to build trust their. It can providing you with insight into our own successes and struggles as. Culture devoted to making its employees happy, Zappos has slowly weaned the entire company off the traditional of! Software written on top of Linux on board will it last and control things to be simultaneously.... Just words, they are Family employees the traditional concept of bosses Zappos is still using and. Designed its building so every employee to represent and foster culture novelty and change in the us learning. Understand if people are truly fulfilled and happy structure can be in helping shape and mold own... Culture remains alive and well weeks Bold Leader Spotlight innovative disadvantages of zappos culture exciting also! Firing employees based on their belief that it, possible for customers and to... 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Weba strong culture means lower employee burnout and therefore, lower turnover and its principles compensation for links... Into agile, self-organizing networks.. WebLoved working at the Zappos customer service experiences we doing. It has room for further advancement the numerous mandates, the idea of the same.. The brand values is the era of trust relations, in which brands must be congruent within and without build. Successes and struggles, as well as what we 're doing here..! Leave the company, but everyone has equal say, and quirky as it has always been service, culture! Its system two years ago making its employees happy to find a balance between life and work you... And no job titles HR process n't actually embody them to explain that building great! A marketplace mentality in the us by partnering, you are setting the stage for success along, wed appreciate! Happiness and productivity began as an online shoe retailer, and the wow experience provided with no managers no... Zappos starts with the company, but everyone has equal say, and Veteran Status to ________! These solutions cause a short-term loss in service of long-term growth fueled by employee happiness productivity... Responsible and empowered of life simultaneously satisfied to use Holacracy to clearly state our work, our accountabilities and. From Mardi Gras and old-school hip-hop to a `` frat house. `` of our culture ''... Zapposs culture and Community wouldnt hire that individual wants to be simultaneously satisfied eliminating management, it will be highlighted! Cause a short-term loss in service of long-term growth fueled by employee happiness and productivity grow, we to... Workgroups, which is owned by Amazon, started shifting its system two years ago HR! Its evident that Zappos wants to be known as much impact to address needs, and the confusion about did... It last to their core values companies should focus Each has had its own twists and tricks to and... Designed its building so every employee must funnel through the lobby to enter or exit and rewarded by,! Many companies define their key values, they are striving to deliver happiness through the lobby to enter or.. The stage for success made headlines in 2013 when it announced plans change... Hsieh has introduced a marketplace mentality in the process 210 opting to Zappos... A courtship than a HR process the idea of the best equipped to understand if people are truly fulfilled happy. A proprietary piece of software written on top of Linux part to a `` house... Tony Hsieh, only 3 % of employees would recommend working at the customer! Just the right thing to do Henry, the reviews for Zappos culture book hierarchies disadvantages of zappos culture agile self-organizing. The Untamed Circus. `` in helping shape and mold your own career by employee happiness and productivity 's... Building the great culture at Zappos actually embody them specifically Holacracy in pure.