Zappos gives job titles the boot

The company plans to adopt what's known as "holacracy," the latest craze in getting employees to be more productive and entrepreneurial.

Zappos, the online shoe store, plans to change its corporate culture, according to a new report.

During a four-hour company meeting last month, Zappos CEO Tony Hsieh announced that his company, by the end of next year, will have fully moved over to a "self-governing" system aimed at making employees more productive and entrepreneurial, according to Quartz.

The system, known as Holacracy, removes all job titles and managers in a corporate structure, leaving nearly every employee on equal footing. According to Quartz, Zappos is going all-in on the system and will create approximately 400 "circles" made up of a group of employees that will be tasked with projects. The group must work together -- sans hierarchy -- to do their jobs.

Holacracy is a growing, but still relatively unknown corporate structure. With its 1,500 employees, Zappos will be one of the biggest companies to adopt the structure, said Quartz. Medium, the publishing platform created by Twitter co-founder Ev Williams, also uses holacracy.

According to Quartz, who spoke with a consultant specializing in the corporate structure, it's designed to focus on work, rather than individuals. By doing so, supporters believe the best people will automatically find their way to the right part of the job, and it'll be done most efficiently.

So far, no other firms have announced plans to go after holacracy.

About the author

Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.


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