EO Downward Upward Vice Diagon FIGURE 7.7 The Flow of Communication in an Organizational Hierarchy squich rumors and incorrect informa tion. For instance, rather than confront- ing employees about gossip and placing Key them on the defense, some employers Upward ask employees-especially those who are - Downward the spreaders of gossip-for assistance in Horizontal squcching the untrue rumors. This tactic Diagonal turns employees into advocates for shar ing truthful information Monitoring Vice Vice President President Communications President Technological advances and the increased use of electronic communica tion in the workplace have made monitor- ing its use necessary for most companies. Horizontal Horizontal Failing to monitor employees use of Manager Manager Manager Manager email social media, and the Internet can be costly. Many companies require that employees sign and follow a policy on appropriate Internet use. These agree Managers can turn the grapevine to their advantage. Using it ments often require that employees will use corporate computers as a "sounding device for possible new policies is one exam only for work celated activities. Additionally, some companies ple. Managers can obtain valuable information from the grape use software programs to monitor employee computer usage vine that could improve decision making. Some organizations Instituting practices that show respect for employee privacy but use the grapevine to their advantage by floating ideas, solicit do not abdicate employer responsibility are increasingly neces ing feedback, and reacting accordingly. People love to gossip sary in today's workplace. Merck, for instance, has a section on and managers need to be aware that grapevines exist in every employee privacy in its code of conduct that reassures both cur- organization Managers who understand how the grapevine rent and former employees that their information will be pro- works also can use it to their advantage by feeding it facts totected and used only for legitimate business purposes." Diagonal Manager Manage 36 ZAPPOS TAKES STEPS TO MANAGE DIFFERENTLY Z: appos began in 1999 as an online shoe with nominal managers. The authority that Best Companies to Work For. Despite these retailer that has expanded into many nominal managers have over employees is challenges, Zappos has proven it is willing to product categories since then. The company highly limited. The structure allow employ take risks If it means growing the company is known for its any corporate culture and ees to fill multiple roles and pursue actions without compromising productivity.* emphasis on creating "WOW customer ser they believe will create value for the tem vice. Yet as Zappos grew, CEO Tony Hsieh Zappos believes that allowing employees to Discussion Questions became concerned. As companies grow. explore their passions and do the types of productivity per employee tends to decrease 1. What are some of the benefits of a man work in which they have greater skills Conversely, as cities double in growth, pro move the company forward agement structure where employees man ductivity increases 15 percent. How could he age themselves? Not everyone was happy with the trans make Zappos grow like a city? Hsieh believed tion About 18 percent of employees chose 2 What are some of the disadvantages of a the answer was in self-management and to leave. The remaining worldorce has mixed management structure without traditional power distribution feelings. Many believe the structure is integral managers? Zappos adopted a holocracy management to Zappos' success in the long-term Others 3. Why do you think it has been so difficult structure, which replaces teams with work cir are not so sure. For the first time in years. for Zappes to change its organizational ces.jobs with roles and traditional managers Zappos did not make Fortune's list of 100 structure? CHAPTER 7 Organization Teamwork, and Communication 141
