Contingency Factors-Organizational Design-Zappos
Contingent factors affecting an organizational design are; size, age, technology used, strategies and the environment of the enterprise (Csaszar, 2013, p.1096). Zappos Company has approximately 17 years of trading. This shows that the company is probably in its last stages of business. The management has had time to incorporate the organization and knows its strengths and weaknesses. The decision of Zappos to adopt holacracy is suitable since the method works effectively with old firms. For new businesses, it may cause ambiguities since the employees may not have adequate knowledge and skills to formulate decisions: PLAGIARIZED SAMPLE–ORDER YOUR PAPER NOW
Secondly is the size of the organization. Choosing an organizational design will require the management to assess how big the business is to avoid using an ineffective method which may lead to loss of control and power. Zappos is a medium sized company with about 1500 employees. For holacracy and team-based to be undertaken, a large firm will be desirable for the senior management to deal with the groups rather than dealing with an individual employee. This will save time and the groups will provide more information to the management than it initially knows.
Finally, Zappos has a serene operating environment which provides it with near raw materials for shoe, handbag and cloth production. There is also a ready market at Las Vegas. Moreover, the company operates with the latest technology. Shamsuzzoha et al. (2013, p.130) said that the firm has been the cutting edge of innovation, and it was one of the early adopters of social media technology for advertising to market its products. The two features will assist the CEO to monitor the performance of the firm and right areas where the groups may forget to handle. The serene environment will make the teams work comfortably producing the best for Zappos: ORDER YOUR PAPER NOW
Csaszar, F.A., 2013. An efficient frontier in organization design: Organizational structure as a determinant of exploration and exploitation. Organization Science, 24(4), pp.1083-1101
Shamsuzzoha, A., Kankaanpaa, T., Carneiro, L.M., Almeida, R., Chiodi, A. and Fornasiero, R., 2013. Dynamic and collaborative business networks in the fashion industry. International Journal of Computer Integrated Manufacturing, 26(1-2), pp.125-139.