Zappos’ CEO Tony Hsieh has created a unique organization, not only for its customers (who get free shipping and free returns for up to a year), but also for its employees. Zappos has kept its call center in the U.S. and its employees are part of the “customer loyalty team.” Call center employees are given no scripts and no time limit for phone calls. They are given leeway to do whatever it takes to make a customer happy. Hsieh also wants to make his 1,400 employees happy. He says that he wants them to see their work as a calling, not just a job or a career. The company promotes a fun environment and empowerment for its workers. The company goes as far as offering employees up to $3000 to quit work as a way to test the quality of their employee friendly environment. Hsieh believes that ultimately this approach makes the world a better place. Discuss the following:
1. Zappos gives its employees flexibility to “do whatever it takes” to make the customer happy. What are the potential disadvantages to this approach?
2. How does paying people to quit test the quality of the work environment? Could this backfire? Why or why not?
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