Read Case 10.1 and answer the following questions.

A self-managed team is an attractive concept.

First, define the concept. Second, is it understood the same at Zappos?

_ Case 10.1 Zappos Eliminates Managers Online shoe retailer Zappos (an Amazon company) is known for its exceptional customer service, a strong culture based on 10 core values, and encouraging the individuality of employees. Tony Hsieh, Zappos CEO and cofounder, has become well known for his mantra of \"delivering WOW!\" to the company's many satis ed customers and recognizing employees as a key component of the rm's overall success. Typically earning a spot on Fortune's annual \"100 Best Companies to Work For\" list, Zappos has recently been in the news for other reasons. Several years ago, Hsieh decided to implement a new business strategy called holacracy, in which management jobs and titles are eliminated, and self-managed teams are the core of a at organizational structure. Created by software engineer Brian Robertson, hol acracy replaces a typical vertical hierarchy with a series of self-managed work circles that operate with a certain amount of overlap when it comes to employees' roles. Each circle is led by people called \"lead links,\" responsible for making sure the team gets its work done; however, these leads have little or no formal authority and cannot force employees to do anything they don't want to do. In 2013, Zappos' HR department was the rst group to implement the new holacratic approach. But Hsieh thought the implementation process was too slow, and the company was left operating with both the old man- agement structure for some departments and new work teams in other parts of the organization. So Hsieh decided to \"rip the band-aid off' and accelerate the implementation of holacracy throughout the entire organization. Effective April 30, 2015, in an effort to eliminate the company's management hierarchy, there would be no more people managers, and certain de partments within the organization (e. g., merchandising, nance, technology, and marketing) would be phased out and those jobs would transfer to roles in the appro- priate work circles. As part of the process, Hsieh sent a lengthy email to employees, explaining why he believed holacracy was important and how it would help spark innovation. Recognizing that not everyone would thrive in a team atmosphere, Hsieh offered employees the opportunity to leave the company with a minimum of three months of severance pay and paid health care benefits for a specific period of time. For some Zappos veterans, the offer was even more generous: one month of pay for every year worked at the company. To date, more than the team experiment will lead to success. In addition to 30 percent of the company's 1,600 employees have losing nearly one-third of its employees, for the first either taken the offer to leave or left on their own to time in eight years, Zappos did not earn a spot on seek employment elsewhere. Fortune's "100 Top Companies" list in 2016, where Hsieh hopes holacracy will help employees operate employees' positive evaluations of their company count more like entrepreneurs and less like cogs in a bureau- heavily in the final rankings. cratic structure. He also thinks this new team approach could help create unlikely collaborations that could lead to more innovation and creativity in the organization. The changeover has not been without obstacles. In me more addition to losing experienced employees (including former managers), the new approach continues to cause 2. Hsieh how u confusion among employees who were use to seeking W tay advice and direction from their supervisors-who are with e is no obporta now gone or who are now co-workers in the flat orga- advanceme nizational structure. Also, in the coming year, former 3. managers who have new roles at the company will, in the offer to leave the company? all likelihood, experience pay cuts because their re- sponsibilities as managers have been eliminated in the Sources: Organization website, "How Holacracy Works," http://www. holacracy.org, accessed April 21, 2016; Jennifer Reingold, "How a Radical Shift new team approach. Some critics say there is little or Left Zappos Reeling," Fortune, http://fortune.com, accessed April 21, 2016; no motivation for people to stay at Zappos if there is no "Zappos Tries Holacracy, 200+ Quit," CNBC, http://video.cnbc.com, accessed opportunity for advancement up the corporate ladder. April 21, 2016; Adam Lashinsky, "Why Amazon Tolerates Zappos' Extreme Although he regrets not implementing holacracy Management Experiment," Fortune, March 4, 2016, http://fortune.com; Ann sooner, Hsieh says it's too early to tell whether the self- Latham, "Why Pain Is Inevitable for Zappos and Holacracy," Forbes, January 27, 2016, http:/www.forbes.com; Gregory Ferenstein, "The Zappos Exodus managed teams approach will be a success. (Holacracy's Wasn't about Holacracy, Says Tony Hsieh," Fast Company, January 19, 2016, creator says it takes between 5 and 10 years before a http://www.fastcompany.com; Rebecca Greenfield, "Holawhat? Meet the company will know whether the new team approach will Alt-Management System Invented by a Programmer and Used by Zappos," be successful.) Hsieh firmly believes that the company's Fast Company, March 30, 2015, http://www.fastcompany.com; Rebecca core values and strong culture provide a solid foundation Greenfield, "Zappos CEO Tony Hsieh: Adopt Holacracy or Leave," Fast Company, March 30, 2015, http://www.fastcompany.com; Aimee Groth, for such an exciting and bold move to self-managed teams. "Holacracy at Zappos: It's Either the Future of Management or a Social However, Zappos' employees don't seem convinced that Experiment Gone Awry," Quartz, January 14, 2015, http://qz.com