SUPPORTING CASE: ZAPPOS 2
Zappos
A company cannot be successful without a strong managerial presence and a workforce
that is ready and willing to satisfy customers. This was the case in Zappos. In 2000, they were
facing troubles due to the employees’ lack of desire to work to their fullest potential. When they
hired first generation American Taiwanese consultant, Tony Hsieh, Zappos implemented a new
set of core values that encouraged employees to have strong customer service skill when talking
on the phone and fulfilling customers’ orders quickly and efficiently. Hsieh was able to turn
Zappos into a successful responsive organization. This is proven because once he was hired, the
company’s financial troubles were almost eliminated. He encouraged the employees to meet
demands quickly, to become efficient problem solvers, and to adapt to what the customer needed
in order to keep them coming back to shop online at Zappos.
Layoffs are unfortunate in any company, and it was no different when it occurred at
Zappos during the Great Recession. I would believe that because they had a positive and fun
work environment that centered around the employee, that the employees, too, realized that it
was a difficult thing for Zappos to do. They were offered a severance package – something not
offered to everyone who was laid off during this time. Though not ideal, these employees were
fortunate. The employees who continued working at Zappos probably improved their
performance once they were aware of the layoffs.
Once Hsieh Zappos had an excellent human resources management system. They were