Zappos is reportedly instituting a radical overhaul of its management structure that will eliminate traditional managers and flatten the corporate hierarchy, even eliminating internal job titles. According to the Washington Post, this management structure is known as a “holacracy.”
Holacracy is designed to create overlapping circles of self-governing employees, giving workers more autonomy. Employees typically belong to several circles and while there are designated employees that assign tasks, each circle collaboratively makes decisions about how tasks should be completed. There is still some corporate structure and employees are still held accountable for their performance.
Zappos currently has 10% of its employees working in the new holacracy system and reportedly intends to move all employees into the new structure by the end of 2014.