Management 13th Edition by John Schermerhorn,Daniel Bachrach

Exercise 1

LEARN FROM ROLE MODELS
Zappos' "work-hard play-hard" setting includes free food and fully paid medical and dental insurance.
Tony Hsieh Taps HRM to Keep Zappos One Step Ahead

A s the CEO of Zappos.com, a popular online retailer that sells shoes, clothing, handbags, and more, Tony Hsieh (pronounced shay ) has led the company through an amazing period of growth. He's also forged a creative and unique approach to human resources management, designed to hire and retain only those individuals who are truly committed to the company's values.
Before becoming "Zapponians," prospective hires go through two interviews. In the first, Zappos interviewers assess applicants' technical proficiency. In the second, they evaluate applicants' ability to fit into the Zappos culture, which is characterized by 10 core values. Hsieh actually created the "cultural fit interview" himself. He included questions such as: "On a scale of 1 to 10, how weird are you " "If they say 'one,' we won't hire them.... We like 7s or 8s," says Hsieh. He also notes that "qualified egotists need not apply" because one of our core values is to "be humble."
Once hired, all employees, including executives, are required to go through a four-week customer loyalty training, where they not only spend time on the phone with customers but also work at the company's giant warehouse in Kentucky. At the end of this "KY Boot Camp," boot camp trainees are offered a $2,000 bonus to quit and walk away. When asked why he offers to pay new employees to leave the company, Hsieh says that he wants only people who are committed to his long-term vision. Interestingly, 97% of the trainees turn down the buyout.
Hsieh also believes in creating a "work hard, play hard" atmosphere. To keep Zapponians inspired, he throws a weekly costume party at the main office. Hsieh also has implemented several employee-friendly practices such as providing free food in the company's cafeterias and vending machines as well as paying 100% of employees' medical and dental expenses.
FIND THE INSPIRATION
Is Hsieh's approach to human resource management just an interesting oddity Or, is it representative of the direction more organizations should follow to attract today's new generation of talented workers What aspects of the Zappos approach could be used by just about any employer What parts might not fit at all If Hsieh moves on to other opportunities, can his HRM practices survive at Zappos without his continued leadership