Holacracy is a innovative human resource management and its authority are allocated throughout a self-organizing teams rather than a top leader.
According to the report, 80% of Zappo’s 1,500 employees are now working under Holacracy. In Zappo, each employee reports to the other people in their “circles”, which are assigned an organizational goal to achieve. As we all know, the managers always want the tellers to work hard so that she can meet her operation target. Nonetheless, the workers always take on-the-job leisure and could not make the use of their effort.
Holacracy is able to solve the Principal- Agent problem. Firstly, without a manager, everyone in the “circles” regard themselves as a small leader and have the same share profit as a group. Holacracy arouses the enthusiasm and efficiency of employees to achieve the organizational target. As a result, faster, more appropriate and well-round decisions was made to solve problems. Furthermore, Holacracy is able to make Zappo hold Highly Effective Meetings. Each employee can be assigned to several “circles” which aim to solve different kinds of problem. The Problem-Centered organizations enable the firm to to address concrete tensions efficiently without waste of time.
Work Cited:
- http://www.businessinsider.com/majority-of-zappos-employees-donthave-a-manager-2014-11
- https://lh3.googleusercontent.com/rJqvirv0mzGp1z5zByxDr6icwnKXCidhMSJl_tvKqNkhM8nia_36N2cRYsq9MHA7baM529XSjWW30XU1drao97uLmT_eRxmOeNFzeSOKnxF3f9eqtE3nQYvmmg
- http://holacracy.org/
- http://abovethelaw.com/wp-content/uploads/2012/01/zappos-logo.gif
