Zappos Case Study
Introduction
Zappos is a successful company with a unique corporate culture and impressively low turnover rate. This case study explores the human resources strategy employed by the company, focusing first upon the significance of the environment upon human resources. The paper then identifies how the Zappos strategy fits within the human resource management model. The final section discusses the core strengths and weaknesses of the Zappos HR strategy. While the Zappos human resource practices are characterized by many strengths, they could be improved by enhancing the accountability of managers responsible for conducting performance appraisals and inviting a greater degree of employee feedback into the appraisal system. Both of these relatively small opportunities for change are consistent with the company's overall company culture.
Environment and HR The external environment plays an important role in determining the direction of a company's human resources strategy. "An organization's strategy must be appropriate for its resources, environment circumstances, and core objectives. The process involves matching the company's strategic advantage to the business environment."[1] Companies develop networks with external entities, such as customers, suppliers and investors, which must be cultivated to ensure longevity.[2] Human resources must ultimately support the business with practices that will enable it to interact and compete within the surrounding competitive environment. The external environment exerts an important influence over the Zappos company human resources department, its strategies planned and the modes of implementation. This influence is demonstrated in a few key ways. The first is the company's emphasis upon creating a "personal emotional connection, or otherwise known as PEC."[3] The Zappos family of businesses actually do