The management at Zappos provides a platform to the employees for innovative ideas that are arguably possible to be tested and implemented. Employees in the company communicate freely regardless of the work positions and the different hierarchical levels. The work relationship has enriched the employee engagement in Zappos thus providing a smooth working environment for all staff. The interrelationship in the organization has been bound by innovative methods that seem to properly organize general processes (Burkus, 2011). Zappos' leadership sets an example for other external firms to emulate and test. Other organizations can mimic the management proficiency in Zappos by following two pointers:
Creating a Strong Bond With Employees
A team in an organization is most productive when all the key members participate fully. Such productivity can be achieved when the workers have a conducive working surrounding with the minimal pressure that can affect their participation. Zappos values its employees as the main factor that supports the daily running of the company. The organization creates an unbreakable connection between employees by involving them in social networks and team building practices. Once employees are recruited, they undergo extensive training to familiarize with the company's projects and to grasp everything related to it. This culture has been embraced since employers are free to indulge in dialogues with their managers. This exercise has chipped in motivating the workers.
Zappos' communication patterns are evident since the clients and the workers use proper channels to relay their feelings and views on the services. Zappos has a proficient leadership that updates the employees on the progress of their performance and productivity. Zappos exercises proper communication as a sign of valuing the employees not just having them for beneficial purposes.
The leadership in Zappos Company respects the customer relations and the services. This action has strengthened the relationship the organization has created with its clients. Zappos believes that clients are always right and it focuses on providing quality products and services. Customer satisfaction in Zappos has led to the growth of the company's networks to other external markets. The management in the company ensures that all complaints from clients are checked and corrected to prevent same errors in future. This exercise has proved the company's loyalty and trust to the clients. Zappos' stakeholders seemed to differ with the company's interaction in social media platforms. The stakeholders preferred a company that focused on the marketing of goods to the active participation Zappos showed on media networks. At one point, the stakeholders raised the issue of the technical glitches the company faced leading to an incurrence of a major loss (Frei, Ely & Wining, 2009). Their idea was that the company focuses on maximizing profits rather than spending most of the time engaging employees and creating more networks through customer satisfaction. The issue created tension with the board and the key managers of the company. Zappos' clients are the major stakeholders of the organization. They were contented with the services offered and developed trust towards the products of the company. Zappos' return policy lured the clients into increasing their purchases on the various orders. The employees are also important stakeholders of the company. They provide proper services and are free for innovation. The employees communicate freely and are ready to raise issues about the problems they face.
Zappos, like other organizations, faces ethical challenges that affect the production performance of the organization. Below are three ethical challenges that the company faces and a recommended solution for each problem:
This term refers to the temporary or permanent termination of employment of worker(s) in a company. In 2008, Zappos ended the employment of 8% of the employees. The management in the organization relayed the cause of this action on media networks and the company's website. The management had a problem of settling this ethical challenge since it might seem like a breach of the ethical values. This issue can be handled through effective communication and explain to the public about the challenge.
Amalgamation with Amazon
The board of stakeholders proved not to be supportive of Zappos merging with Amazon. This action led to tension in the organization. Amazon's culture was different from that running Zappos. The ethical challenge was that Zappos would find it difficult to adapt to Amazon's culture. This issue can be perfectly solved by having Zappos as an independent company that abides by its cultures.
At one time, Zappos database system was hacked and was the organization lost valuable information in the process. This issue outraged most of the customers since their details, and financial content of the sales was lost. The call center was disconnected since most clients made calls to inquire about the situation. However, Zappos briefed the clients individually about the hacking that occurred. This situation could be settled by picking all calls to avoid tainting the image of the company since most clients thought their requests were ignored.
Zappos mainly focuses on customer satisfaction by ensuring proper services are rendered to the clients. This core value has been the main factor that has boosted the profits of the company. Communication, also as a key value has created a strong relationship between the organization and the stakeholders. The core values have ensured smooth operations of the firm through relaying information to the parties related to it. These values demonstrated by Zappos have created trust for transparency thus avoiding tainting of the company's reputation. The management at Zappos decided to embrace change, as a core value, testing the effectiveness in the organization. Employees were trained and led through the process of change to a new business model and it has since proven to be successful (Michelli, 2011). At some point, shareholders of the company doubted their engagement at Zappos. This was because of the fluctuating profits and the alleged low wages that employees from the customer services received. However, the improvement in the services and embracing a culture of bonding with the employees have greatly proven to attract the indulgence of the stakeholders.
Zappos faced some ethical challenges that affected the company's reputation. The company advertised its products by displaying nude content to showcase its products. The company had to take down the advertisements or would be prone to experiencing major losses. This is an ethical challenge that requires professional consultation before releasing it to the public.
Another ethical challenge that Zappos faced was the disconnection of the call center after the company's database was hacked. The company later resolved the issue by communication to every client individually. The firm could have instead explained themselves during that tense period to avoid withdrawal of some clients.
Burkus, D. (2011). Building the strong organization: exploring the role of organizational design in strengths-based leadership. Journal of Strategic Leadership, 3(1), 54-66.
Frei, F., Ely, R., & Winig, L. (2009). Zappos. com 2009: Clothing, Customer Service and Company Culture.
Michelli, J. (2011). The Zappos Experience: 5 Principles to Inspire, Engage, and Wow. McGraw Hill Professional.
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