Zappos, an online shoe and clothing retailer, has adopted a radical management structure called Holacracy. The system, which eliminates traditional roles and managers, is designed to distribute authority evenly across the organisation. Every employee is part of several circles, each with a specific purpose, and has distinct roles within them. The circles are self-governing, with decisions made by a process of consent.

Despite its potential benefits, Holacracy has seen mixed reactions at Zappos. While some employees appreciate the flexibility and autonomy, others find the lack of clear hierarchy confusing and stressful. The system has also led to a high turnover rate, with 18% of staff leaving within the first year of its implementation.

Critics argue that Holacracy is too rigid and bureaucratic, with its strict rules and procedures stifling creativity and innovation. They also question its scalability, as the system requires a significant amount of time and resources to maintain.

Supporters, on the other hand, believe that Holacracy fosters a more collaborative and transparent work environment. They argue that it empowers employees, allowing them to take ownership of their work and make meaningful contributions to the company.

Despite the controversy, Zappos remains committed to Holacracy and is continuously refining the system to better suit its needs. Whether it is the future of management or a social experiment gone awry remains to be seen.

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