MGSM870 Case Write-up

Zappos
1.

Using either the cultural web, or the iceberg model from the textbook, how
would you describe Zappos culture?

First, let us get a another working definition of culture and say that culture is a property of a
social group whose members share a considerable number of common experiences in
successfully addressing both external and internal challenges. Because of these common
learning experiences, over a period of time, these groups form a shared opinion how the
world works around them and of the methods for meeting these challenges.
Groups which
handle external
and internal
challenges
develop
common
experiences

Pattern of
Assumptions

Over a
period of
time become
Values

Culture

As an organisation expands, managers cannot be personally involved in each and every

decision and cannot ensure that decisions being made comply with the organisations goals.
But as certain values develop, these can be used by employees as the basis or criteria for
making decisions.
Taking some elements of the cultural iceberg, and in terms of Visible Artefacts we can
readily discern:
-

Physical structures - Zappos workplace: circus-like atmosphere; three-seat

shoes-shine stand with full-sized skeletons; carnival-style popcorn machine;
Dance Dance Revolution arcade game; dcor testament to employees drive to
create fun and a little weirdness; tour-groups; Monkey Row cubicles
positioned underneath dense plastic vines where senior managers sat; openplan, democratic office space.

Language Happy People, Kept Happy: candid, open ambience;

Routines and Rituals Screening for Cultural fit; off-beat employee

application forms; skills-based and culture interviews; behavioural-based
questions around 10 core values; call-centre training; weeding out uncommitted
hires by offering them $2000; employees given complete freedom to interact with
customers: call centre turnover rate 7% compared with industry average of
150%!; managers spend 10%-20% of their time socialising with team members
outside of work less separation of work and life.

Stories and Legends- Hsieh himself as the founder, entrepreneurial background

selling pizzas at Harvard; 5-hour call taken by call team member; 450-page
Culture Book

In terms of Shared Values and assumptions to guide behaviour and decision-making,

Zappos has 10 core values:
1. Deliver WOW Through Service
2. Embrace and Drive Change
3. Create Fun and A Little Weirdness
4. Be Adventurous, Creative, and Open-Minded
5. Pursue Growth and Learning
6. Build Open and Honest Relationships With Communication
7. Build a Positive Team and Family Spirit
8. Do More With Less
9. Be Passionate and Determined
10. Be Humble
These were assembled from employees themselves, but shaped by Hsieh. We only hire
happy people and we try to keep them happy. You cant have happy customers without
happy employees, and you cant have happy employees without having a company where
people are inspired by the culture. Re: value 7 above, Hsieh cites a study that found people
were happier and more engaged at work if they made friends on the job; managers spend
10%-20% of their time socialising with team members outside of work.
2.

CEO Tony Hsieh asserts that their culture allows Zappos to accomplish more
with inspiration than motivation. What does he mean? Do you agree?

As noted in the lecture, culture inspires people to pursue organisational goals for reasons
other than self-interest; motivation is about satisfying personal drives or needs, whereas
culture is more about doing things less for their outcomes/payoffs for individuals but more for
the good of the collective. If I internalise the values of the organisation and they mesh with
my own, I act less out of promise of reward, or fear of punishment, but because I think the
task is worth doing in, and of, itself. Sure, I get something along the way in the guise of my
innate needs being met, but theres also some supra-individual forces at play in
organisations such as Zappos making me committed or loyal.