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Zappos Concept Of Motivation Essay

1531 words - 7 pages

Discuss the approach used by Zappos. Why is the approach not used very often? What are the challenges and the benefits? Zappos was acquired by Amazon in 2009. What organizational changes do you believe occurred due to the acquisition and would continue to occur over time? Discuss the concept of motivation and Zappos. Would Zappos be a motivating place to work? Why? Why not? Your analysis must include supporting evidence.

Zappos has a very unique approach to motivating its employees, which is spearheaded by its CEO Tony Hsieh. This approach includes a study of happiness, respect, and the company is centered on the idea of “a corporate culture of caring a priority”. Zappos is able to ...view middle of the document...

Employers are viewed as potential leaders; the company allows them to pursue growth and to build open and honest relationships with their customers.
While the idea of a merger or acquisition is to boost organizational profits and ultimately a stronger company, historically many companies fall short of this achievement (50-70%). Challenges such as insensitive management, lack of trust in employees, poor communication, power struggles, and poor leadership all contribute to the low rate of successful merger or acquisitions. Zappos on the other hand is doing remarkably well in the acquisition from Amazon. This integration was a success because of the strong leadership of CEO Tony Hsieh. Since the acquisition, Hsieh remains at the helm of Zappos, and continues to be devoted to his company, and employees. Hsieh ensured that for now Zappos remains as it’s own entity, entirely separate from Amazon. For Zappos employees this means they retain the same benefits they always have. Aaron Magness, director of brand marketing and business development stated, “There hasn’t been a change in the way we do day-to day-business, and that’s exciting.” Operationally, they have their own payment system, inventory management, and website operation. For Amazon, this has been a huge profit boost; in the first quarter results since the acquisition of Zappos, the company’s “other” stuff sales reached 3.51 billion.
Corporations today use many differing methods to motivate employees. Some use the carrot and stick method, which uses an implied reward to motivate employees to work harder and more efficiently, while others rely on a fear method, which tells employees to work harder and longer or else lose their jobs, and some corporations motivate by attempting to measure the intangibles. Zappos takes the last method to an extreme and accomplishes its motivation goals utilizing an unorthodox system of incentives designed to increase happiness. Tony Hsieh, Zappos CEO, believes that “happiness is the driving force behind almost any action an individual takes.” It is this firm belief that drove him to build a company around the principles of happiness and inclusiveness. To accomplish this Hsieh developed a system of whereby all new recruits interviews are judged on how well they relate to the company’s values based on, “gauging their own weirdness, open-mindedness, and sense of family.” Only after passing this interview process are recruits allowed to participate in a 5-week training course with an offer of $2,000 to quit at any time during the 5 week training if they feel the company is not a good fit. Zappos also offers other benefits, such as a full time “goal coach,” whose job is to meet with employees and help them to set and meet personal and professional goals. While Zappos uses some typical motivation techniques such as paying for full health care, other perks to working at Zappos include; “a nap room, a petting zoo, a makeshift bowling alley,... karaoke, or a popcorn...

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