Zappos, the online shoe and clothing retailer, has been undergoing a radical workplace experiment known as Holacracy. This system, which eliminates traditional management roles to create a flat organisational structure, has led to mixed results. While the company has seen an increase in productivity and a surge in creativity, it has also suffered from a mass exodus of employees, including some top executives. A total of 18% of the company’s workforce has left since the implementation of Holacracy, a figure that is significantly higher than the average turnover rate in the tech industry. Despite these setbacks, Zappos CEO Tony Hsieh remains committed to the system. He believes that the initial difficulties are part of the transition process and that the company will ultimately benefit from the new structure. Critics argue that the system is difficult to understand and implement, and that it may not be suitable for all companies. They suggest that Zappos’ experience serves as a cautionary tale for other businesses considering similar changes.
Go to source article: http://www.foxbusiness.com/business-leaders/2015/10/21/zappos-wacky-work-experiment-gone-wrong/