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415-096-1 Educational material supplied by The Case Centre Copyright encoded A76HM-
JUJ9K-PJMN9I CoursePack code C-4099-384859-STU Beyond Resumes: Marriott Using
Gamification to Recruit Top Talent in Hospitality This case was written by Koti Vinodbabu,
under the direction of Debapratim Purkayastha, IBS Hyderabad. It was compiled from
published sources, and is intended to be used as a basis for class discussion rather than to
illustrate either effective or ineffective handling of a management situation. © 2015, IBS
Center for Management Research IBS Center for Management Research (ICMR) IFHE
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751125 e info@thecasecentre.org Purchased by Casey Kohlstruk for use on the LEADING &
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info@thecasecentre.org IBS Center for Management Research Beyond Resumes: Marriott
Using Gamification to Recruit Top Talent in Hospitality Educational material supplied by
The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I CoursePack code C-4099-
384859-STU An issue of getting the new generation of workers interested in their
organization and industry “As Marriott expands in growth markets outside the U. S., and as
we seek to attract more Millennials – those between the ages 18 and 27 – to our workforce,
we must find new ways to interest them in hospitality careers. This game [My Marriott
Hotel] allows us to showcase the world of opportunities and the growth potential attainable
in hospitality careers, especially in cultures where the service industry might be less
established or prestigious.”1 – David Rodriguez, Executive Vice President for Global Human
Resources, Marriott International. “Those are great because they brand the hospitality
industry and get people thinking about hotels and travel, but I think people are smart
enough to know. That’s why our game is so appealing. Not only am I having fun but I’m
actually getting an understanding of what it takes to run a kitchen.”2 – Susan Strayer, Senior
Director, Global Employer Brand and Marketing, Marriott International. Marriott
International, Inc., the world’s largest hotel company, launched a social game on Facebooka
called ‘My Marriott Hotel’ on June 6, 2011, to recruit the best candidates in hospitality.
Developed in association with Evvivab, a consulting firm for developing corporate games,
the concept of the game was similar to the Farmvillec game. ‘My Marriott Hotel’ players
could create their own restaurant, where they would buy equipment and ingredients on a
budget, hire and train employees, and serve guests (Refer to Exhibit I for images from the
game). They earned points for happy customers and lost points for poor service. The game
was posted on Marriott’s jobs and careers Facebook page. Marriott aimed to attract people
who were interested in service/hospitality jobs. ‘My Marriott Hotel’ allowed players to run
their own hotel virtually, hiring and firing employees, delivering food, and cleaning rooms.
The happier the guests, the higher the points received, which meant that if the food was
cooked better and eaten by customers, more points could be scored. The players could then
click on “Do it for real” to be directed to the career page of Marriott. Marriott also
experimented with gamification with a game called “Xplor” where the customers virtually
visited five gateway cities and were given rewards for winning the game. Marriott was the
first in the hospitality industry to utilize the increasing popularity of social media gaming to
help generate an interest in hospitality careers.3 It had also developed different apps for
customers which catered to their different needs. For instance, the ‘Red Coat Direct’ app
streamlined the onsite requests of guests, ‘Work space on demand’ offered a space for
meeting, and ‘The Perfect Travel Companion’ helped guests access the mobile check-in
feature by downloading the free Marriott mobile app from the Apple iTunes Store or Google
Play. a b c Facebook is an online social networking service headquartered in Menlo Park,
California. Evviva is a US-based gamification company. Farmville is a farming simulation
social network game developed by Zynga in 2009. 2 Purchased by Casey Kohlstruk for use
on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at
Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to
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contact info@thecasecentre.org 415-096-1 The game received mixed reactions from
analysts, with some of them feeling that it was a good effort on the part of Marriott to attract
youth to the hospitality industry. They felt that it was a good tool to catch the best talent in
the hospitality industry. But others were dismissive. They contended that the plot and
content of the game were below gaming standards. Also, they were of the view that the
game might not generate an interest among the players as the tasks outlined were related to
kitchen stuff, something that most youngsters preferred the least. Here, the applicability of
social media for recruiting the best talent in the hospitality was also a question, given the
negative reactions from some analysts as well as the removal of the game from Facebook
page of Marriott careers. Some analysts opined that the game was neither appealing nor
interesting and that it needed more technical improvement. Marriott faced the challenge of
modifying of the game in such a way that it fulfilled its recruitment objective of finding the
best talent in the hospitality industry. BACKGROUND NOTE Educational material supplied
by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I CoursePack code C-4099-
384859-STU Marriott International, Inc., headquartered at Bethesda, Maryland, USA, was a
hospitality company that owned hotels and related hospitality services. It was founded by J.
Willard Marriott, and as of 2015, was led by his son, Executive Chairman Bill Marriott, and
President and Chief Executive Officer, Arne Sorenson. Marriott International had more than
4,087 assets in over 80 countries and territories around the world, over 697,000 rooms (as
of July 2014), and an additional 195,000 rooms that were in the process of development4
(Refer to Exhibit II for Marriott’s Distribution of rooms worldwide). Marriott held 18 brands
in the hospitality industry and had been serving the customers for 80 years. The Marriotts
later expanded their company into a chain of restaurants and hotels. They opened their first
hotel, the Twin Bridges Marriott Motor Hotel, in Arlington, Virginia, in 1957. Their second
hotel was the Key Bridge Marriott in Arlington, Virginia. This became Marriott
International’s longest operating hotel, celebrating its 50th anniversary in 2009. The
company operated franchise hotels and licensed vacation ownership resorts under 18
brands: Marriott Hotels, The Ritz-Carlton, JW Marriott, Bulgari, EDITION, Renaissance,
Gaylord Hotels, Autograph Collection, AC Hotels by Marriott, Moxy Hotels, Courtyard,
Fairfield Inn & Suites, Spring Hill Suites, Residence Inn, Towne Place Suites, Protea Hotels,
Marriott Executive Apartments, and Marriott Vacation Club timeshare brand.
Approximately 330, 000 people worked at Marriott managed and franchised hotels around
the globe. 5 The company’s net income amounted to US$ 192 million for the third quarter of
2014 (Refer to Exhibit III for the key financials of Marriott). The company was named an
“All Star” by Fortune magazine and was part of the “Best Places to Work” list every year
since the list began to be published in 1998. Marriott was also recognized by BusinessWeek
as one of “The Hottest Employers of 2010.”6 MARRIOTT AND SOCIAL MEDIA Social media
were communication tools that allowed people to create, share, or exchange information,
ideas, and pictures/videos in virtual communities and networks. Many companies had
started using mobile and web-based technologies to create interactive programs through
which individuals and communities could share, create, and modify the content. In business,
social media was used to market products, promote brands, and connect to current
customers and start new businesses. Marriott had chosen social media as its medium to
serve the customers efficiently. Since the service involved convenience and saving of time,
Marriott came up with many applications through social media and gaming. Its association
with social media generated a huge response from its followers. Marriott’s Facebook page
had 1,874,121 likes and 4,041,532 visits while its Twitter account was followed by 171,842
people as on March 2015. Its major move into gamification came when it introduced a game
on Facebook in 2011 for recruiting people. The company came up with various apps,
including gaming apps. Again in 2011, Marriott released the 3 Purchased by Casey
Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS
(LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-
Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these
parameters otherwise contact info@thecasecentre.org 415-096-1 app ‘The Perfect Travel
Companion’, which allowed mobile check in and out. Another app ‘Red Coat Direct’, which
was released in August 2012, dealt with the needs of guests while they were on site.
Marriott also released an app called ‘Workspace on Demand’ in 2013 which was useful for
booking corporate meetings. And the gaming application Xplore released in August 2013,
allowed customers to make a virtual tour of five gateway cities and earn rewards which
could be redeemed for a stay in any of the Marriott hotels. Said Paul Cahill, Marriott’s Senior
Vice President for Global Brand Management. “People are living their lives today using
social media to be more productive, to stay connected, to be more mobile, to be more social,
and to be more collaborative. It’s a real-time networking, social networking tool that we
think is power for people who travel to different cities on a regular basis, who are looking to
find other like-minded people who have similar interest.”7 Marriott even came up with a
Facebook game called ‘My Marriott Hotel’ which was aimed at aiding its recruitment efforts.
Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-
PJMN9I CoursePack code C-4099-384859-STU THE PERFECT TRAVEL COMPANION In its
efforts to make vacations better Marriott introduced the Perfect Travel Companion app in
August 2011, with useful features such as mobile check-in, real-time room ready alerts, and
mobile checkout (Refer to Exhibit IV for images from the app). It allowed the customers to
make reservations at 3, 600 hotels and resorts in 71 countries, 24/7, from anywhere, enrol
in Marriott rewards, browse hotel photos, maps, city guides, and amenities, or call a hotel.
They could also make special requests for early check-in, extra pillows or towels, high or
low floor, etc. and view upcoming reservations and make cancellations. This app was
available in English, French, Spanish, German, and Chinese. “We know that more than half of
hotel reservations made using mobile devices are for same-day stays. This shows how
rushed mobile travellers are; speed and choice are critical,” said Shafiq Khan, senior vice
president of e-commerce, Marriott International. “With a few taps, you can now get
immediate access on-the-go to our 3, 600 hotels across 13 brands in 71 countries.” RED
COAT DIRECT Marriott rolled out the free Red Coat Direct app in August 2012to cater to the
needs of guests on site. It sent a personalized version of the app to planners three days
before their meetings (Refer to Exhibit V for images from the app). They could use it to edit
their meeting requests and preferences just before the event or while on site. For example,
they could request an adjustment in room temperature or a change in meal time or specify
the ingredients of a coffee. The app remained available for several months after the meeting,
so planners could also use it to reconcile their bills. “The way people work is more mobile
and global, but until now, organizing meetings has been stuck in the past. We are rethinking
all aspects of meetings from the physical space to the experience for both attendees and
planners, and looking for ways to enable and inspire people to do their best work,” said
Peggy Roe, vice president, global operations services for Marriott Hotels. “Red Coat Direct’s
technology allows planners to continually adjust requests without missing a minute of their
meeting or keeping other professionals waiting.”8 The app was personalized to each
organizer’s specific meeting. Requests could be made up to three days before the meeting
and then throughout the meeting. Once the request had been made, it was routed to the
event manager and the department that could fulfil the request. WORKSPACE ON DEMAND
Workspace on Demand, powered by Liquidspaced, an application to book meetings on
demand, was another app by Marriott, released in January 2013. This app allowed guests to
book both free and paid spaces like booking a guest room (Refer to Exhibit VI for images
from the app). Marriott allowed booking of work space through this app and provided
amenities like guaranteed space with Wi-Fi and power, access to printers and
food/beverage, and booking by the hour or by the d Liquidspace is an US based work space
provider company. 4 Purchased by Casey Kohlstruk for use on the LEADING & MANAGING
EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis.
Taught by Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021. Order ref F419917.
Usage permitted only within these parameters otherwise contact info@thecasecentre.org
415-096-1 adopting to the tech use of this generation, created several apps day. It offered
both free and paid reserved spaces. “The trends are telling. The way people work is
changing. And we’re right there with them. Through Workspace on Demand by Marriott, we
are enabling people to find and book workspaces when they need them,” said Cahill. “We
are challenging the notion that you have to be a hotel guest to use the hotel. We are opening
the doors and saying, ‘Come in, work in our lobbies and use our free Wi-Fi. Gather your
team in our meeting rooms, whether it is all day or just for an hour.’ We made the process
easy and are giving our customers the ability to book on whatever device they prefer.”9
Marriott associated with Steel casee to come up with appealing interiors for the work
spaces. “The world of work is transforming at an accelerating rate,” said Mark Gil breath,
founder and CEO of Liquid space. “Modern professionals are unplugging from cube farms
and private offices and are leaving work to get work done. They are taking ownership of the
choice over where and how they work on a day to day basis. Marriott has identified this
shift and recognized the opportunity for their hotels to be not just a place to sleep but also a
great place to get work done. The combination of their trusted brand, service level, and
property portfolio makes them a compelling new entrant in the workspace industry.”10
Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-
PJMN9I CoursePack code C-4099-384859-STU XPLOR The Xplor game, which was released
in August 2013, allowed travellers to virtually visit cities and win rewards (Refer to Exhibit
VII for images from the game). Stephanie Linnartz, Executive Vice President & Chief
Marketing and Commercial Officer, Marriott International, said, “We see guests effortlessly
blending work and play in a global, mobile world, they embrace technology as a central part
of their lifestyle”11. Xplor was targeted at travellers in the age group of 18-46 years, who
spend more money on travelling. It could be downloaded from the Apple store. In the game,
the players roamed through five gateway cities –New York, Paris, Dubai, São Paulo, and
Beijing. They had to complete the sightseeing challenges, solve puzzles, and answer
questions about different facts related to the sites they visited. They competed to win
Marriott Rewards points redeemable for stay at more than 3,700 hotels around the world.
Marriott gave 1 million reward points per each city, which added up to a total of 5 million
points for five cities. Gamers who completed the entire game won one of three prizes: one
lucky Grand Prize Winner collected 200, 000 Marriott Rewards points and an airline ticket
for a trip around the world, while two RunnersUp received 150,000 Marriott Rewards
points each. The player could select an avatar for himself/herself from the different
characters with different styles which were displayed in the game. They had to search for a
wealthy Aunt Sophia starting from New York, meet different characters, collect points, and
get their passports stamped. David Rodriguez, executive vice president for global human
resources at Marriott International, said, “Social gaming is part of our innovation strategy to
engage customers and attract the next generation of social, mobile travellers and employees
to Marriott with more than half a billion people playing social games globally – this is an
exciting new channel for our company to promote travel and engage with people.”12
GAMIFICATION OF RECRUITMENT Recruitment referred to the process of attracting,
selecting, and appointing the right candidate for the right job in the organization. According
to Dale Yoder, “Recruitment is a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient working
force.” It started when new employees were needed because either an existing one had left
the organization or some new work had to be accomplished. It ended when the new
employees joined the organization, thereby fulfilling the manpower requirements. The
criteria for selection depended on the company’s policy of recruitment as well as job
requirements. There were several approaches in recruitment like internal sources where
the recruitment was done e Steelcase Inc. is a global company headquartered in Michigan,
USA that develops and manufactures furniture, interior architecture, and technology
products and services for corporate offices. 5 Purchased by Casey Kohlstruk for use on the
LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at Washington
University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021.
Order ref F419917. Usage permitted only within these parameters otherwise contact
info@thecasecentre.org 415-096-1 415-096-1 Educational material supplied by The Case
Centre Copyright encoded A76HM-JUJ9K-PJMN9I CoursePack code C-4099-384859-STU
Gamification referred to the concept of applying game mechanics and game design
techniques to engage and motivate people to achieve their goals. Richie Etwaru, Director of
Social Enterprise at UBS, said, “Gamification unlocks a new category of incentives for
organizations to use in encouraging and celebrating preferred employee behaviours.”13
Gamification was different from gaming. It was to take the essence of the addictive factors of
gaming and apply them to organizational factors like employee performance improvement,
better knowledge about the customers, and business benefits. Gamification was the tool for
employees to fulfil their sense of status and achievement. According to an online article in
tnoozf, a study conducted by Gigyag in 2013 showed the following: “Gamification improves
the engagement by one third, with online not just satisfied, commenting improving by 13%,
social media sharing improving by 22%, and content discovery engaged improving by a
whopping 68%”. It was rewarding the employees in terms of their achievement of results.
Businesses could use gamification to drive desired user behaviors that were advantageous
to their brand. One common technique of gamification was to increase engagement by
rewarding users who accomplished the desired tasks. According to Jessica Miller-Merrell,
founder of Blogging4Jobs.com, “The other major component that goes along with this is that
gamification does what interviews and pre-employment tests can’t. It can evaluate problem
solving, quick thinking, time management, and many other leadership-essential qualities
that just can’t be measured with a multiple-choice test”. 14 Companies like Marriott
International used gamification to attract prospective candidates. The idea was that the My
Marriot Hotel game allowed players to see what it was like to manage a hotel. The company
expected playing the game to give a boost to the job seekers’ interest in pursuing a career in
hospitality. The growing interest in gamification originated from a desire among companies
to increase engagement levels among employees and in that process, bring a system of
rewards and recognition into the workplace. Though companies had been using games to
recruit for some time, with social networking and application development technologies,
the process had become more effective over time. Google, Inc., for example, installed a
billboard in Silicon Valley with a tough math question that led users through a series of
challenges. Candidates who solved these would get a job application and were eligible for
screening. Domino’s Pizza developed a game called Pizza Hero where one could perform the
role of a pizza maker and make items. The app let the candidate makes pizzas according to
the specification of the orders. If he/she was up to the standards, he/she could apply for a
job at the local Domino’s pizza center. PricewaterhouseCoopers used Multipoly, its game for
selection, which had candidates play in a virtual reality work environment receiving
missions, attending trainings, negotiating with clients, and solving business problems to
earn points toward getting hired. The US Army earlier used games for training purposes,
but later started using gamification to attract new recruits and promote awareness about
the U. S. armed forces. This effort was initiated in 1999 and the first version was released in
2002. By 2008, four transportable “Virtual Army Experience” units were hitting shopping
malls and public events. More than a decade in the making, the US Army had turned its
knowledge and experience of training games into a powerful recruiting tool. Marriott
needed more than 50, 000 people per year to fill positions in its hospitality division and
those employees also needed training. So the company developed the game, My Marriott
Hotel, which let the job seekers play various hotel roles and develop a basic understanding
of how they worked before applying for a job. f g Tnooz is a global provider of news,
analysis, commentary, education, data and business services to the travel, tourism and
hospitality industry based in the US. Gigya is a US-based technology company that offers a
customer identity management platform for businesses. 6 Purchased by Casey Kohlstruk for
use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at
Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to
15-Dec-2021. Order ref F419917. Usage permitted only within these parameters otherwise
contact info@thecasecentre.org through employee referrals. In outsourcing, this was done
through on-campus interviews, employment agencies, internet recruiting, and social
recruiting where the social networking sites were used for sourcing job seekers. Internet
recruiting involved sourcing the candidates from different job sites by subscribing to them.
415-096-1 Worldwide, online games had surpassed personal e-mail to become the second
most popular activity on the web, accounting for 10 percent of the time spent online. Social
networking sites such as Facebook, which had more than 500 million active users by mid-
2011, accounted for more than 25 percent of the time spent online. 15 Marriott had set up
one of the best Facebook recruitment pages, which by mid-2011, had 50, 000 people
interacting with the page every week. This was more than the equivalent of a third of their
actual work force. As on March 11, 2015, it had 1, 216, 592 likes.16 Marriott aimed to
attract people who were interested in other people and in service/hospitality jobs. The
selection of Facebook as a platform, as opposed to Twitter or LinkedIn or Google+, was a
deliberate move by the company as it identified that the majority of its employee-types used
Facebook and would search for information through it. IT companies were said to be having
success with Twitter whereas professionals such as lawyers and marketers were found
through LinkedIn. Educational material supplied by The Case Centre Copyright encoded
A76HM-JUJ9K-PJMN9I CoursePack code C-4099-384859-STU Some analysts said it was an
interesting question whether Marriott first thought of the catchphrase ‘Where I Belong’, the
tag line of the Marriott’s recruitment ad, in response to the success of social media with its
target group or whether it began to focus on social media because of its core value of
creating a sense of belongingness among employees towards Marriott. Either way, Marriott
effectively tied one of its core values in with its recruiting goals through the ‘Where I
Belong’ campaign, encouraging current employees to upload a photo of themselves and a
sign with their name on it on a dynamic page of its Facebook platform, they said. 17 BEHIND
THE SCENE OF ‘MY MARRIOTT HOTEL’ With the objective of recruitment, Marriott decided
to try something new other than the traditional recruiting practices like sourcing through
internal and external avenues. While exploring new methods of recruitment, Marriott
engaged professional consultants to formulate strategies which would connect them with
employees in Indian and Chinese markets. In Marriott’s opinion, these markets were
struggling with a lack of talent in hospitality and the institutions which provided training in
hospitality in these countries were not very professional. Susan Strayer (Strayer), Senior
Director, Global Employer Brand and Marketing for Marriott International, said, “We really
have a responsibility to pay attention to the markets in which we are growing.”18 This led
to creation of the game to attract the attention of job seekers in growing markets like India
and China. In the process of researching the problem of youth not getting attracted to
hospitality career, Marriott found that young people in the 17-24-year-old age group were
moving to cities from other areas and using social networks like Facebook to look for new
jobs.19 “We worked with Evviva Brands and traveled around the world last year to spend
time with our associates and talk to them about what they do outside of work, how are they
using social media, and how they felt about Marriott and we wanted to uncover some
patterns. For example, we found that in the Middle East, Facebook is the No. 1 activity
outside of work. That was great fodder for us,”20 said Strayer. According to some analysts,
Marriott would have arrived at the conclusion that traditional interviews were not serving
the purpose of picking the best talent as they did not provide employers with enough
information about the candidate. And it led to a company-employeeposition mismatch in
most of the companies. David Kippen (Kippen), CEO for Evviva, played a key role in
formulating the game. During a hotel stay in Mumbai, India, Kippen saw groups of people
outside staring curiously at the hotel. He asked an associate about this behaviour. The hotel
employee said the crowds were curious as to what went on inside the hotel. It seemed to
Kippen that it was a dream for most people in India and China to stay in hotels unlike
Americans who grew up spending vacations and staying in hotels and had an understanding
of hospitality. Kippen wondered what would happen if they were able to bring the inside of
the hotel to those who had no other way of entering the hotel. “It suddenly 7 Purchased by
Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, &
TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker,
from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these
parameters otherwise contact info@thecasecentre.org MARRIOTT’S FACEBOOK
RECRUITMENT PAGE became clear to me that if I were a young, eager, bright Indian man or
woman at their target age (17-24), this would not be a place that I could go. I couldn’t even
envision myself there,”21 said Kippen. By playing it, that would make it easier to imagine
themselves there. Then, they could click on a tab that says ‘Try It For Real,’ and that would
lead them to get an interview and start a conversation with recruiters. This central idea led
to the creation of the ‘My Marriott Hotel’ game in 2011. Marriott had spent 10 months
developing its Facebook game and Facebook career page. The purpose of the game was to
give a glimpse of what happens in the hotel and to encourage the youth to join hospitality.
Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-
PJMN9I CoursePack code C-4099-384859-STU HOW ‘MY MARRIOTT HOTEL’ PLAYED The
game was offered in five languages, namely, English, Spanish, French, Arabic, and Mandarin.
Players earned points for happy customers but lost points for poor service. They were also
rewarded when their operation turned a profit. Marriott planned to add other hotel
departments to later versions of the game, and a mobile phone version was also scheduled
for launch in 2012. The initial version included a game which depicted a Marriott kitchen.
Players had to handle all the responsibilities of a hotel manager. The players bought
ingredients after choosing the best quality and price. They also hired staff based upon their
experience and salaries from the options displayed. Then they bought stoves and kitchen
utensils. They had to pass the customers’ orders to the cooks and inspect food for quality
before delivering it to the customers. The happier the guests, the higher the points. If the
players got the stipulated score, they could click on the tab “Do it for real”. Then they would
be directed to the career page of Marriott and asked to submit their resume. As the game
was connected with social networks, players could easily access it and refer friends to it.
The game reflected the elements of gaming like goal setting, instant rewards, instant
feedback, etc., which motivated the player to successfully execute the game. “It gives people
a realistic view for the kind of decisions that have to be made and the pace of the work,”22
said Rodriguez. THE RESULTS The game received good response from the job seekers
initially. It managed to attract more than 25, 000 players in the very first week. 23 It crossed
100, 000 page views with most of the users being from the US, Egypt, and India24. The
game, which was officially launched on June 6, 2011, had players from 58 countries within
the first 48 hours, including Germany, Hungary, Malaysia, and South Africa. That number
had grown to 99 countries in the game’s third week. Jennifer Benz, president of San
Francisco-based Benz Communications, said, “I think it’s unique to have an organization the
size of Marriott to invest in something as dynamic as their own social media game. Within
the next couple of years more companies will realize social media is not an option. They
have to be engaging. They will realize that there are tremendous rewards and benefits.”25
According to Marriott, the game helped the company generate an interest in the hospitality
industry, increase brand awareness, and identify talent across the globe. According to
Francesca Martinez, Marriott VP of Human Resources, by early 2014, players from 120
different countries were playing the game at any given time. According to her, the game was
successful in increasing traffic to the company’s career site, with approximately one-third of
users clicking on the “try it for real” button on the top corner of the game, which redirected
them to the company’s career site.26 The game was intended to motivate the youth in the
countries where hospitality was not considered to be an adaptable platform for growth.
However, according to some observers, the main problem with the game was that it lacked
entertainment and it failed to sustain the interest of users. 27At the beginning, everything
seemed quite straightforward to handle and the players felt like they were in complete
control of the virtual kitchen. But soon enough, as in real life, orders accelerated, dishes
needed to be constantly inspected for quality, there was a problem with a cook, 8 Purchased
by Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, &
TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker,
from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these
parameters otherwise contact info@thecasecentre.org 415-096-1 and before one knew it,
the Marriott kitchen was running out of control. It was believed by some analysts that the
game’s failure to sustain user interest was attributable to the fact that nothing much
happened in the game and it was also removed from the Facebook page of Marriott careers.
. The company said it would introduce more levels that would show different aspects of the
hotel business but it did not get around to doing so. Job seekers might have felt that
preparation of food items was not an interesting activity. This might be one of the reasons
why the game did not prosper for long in the Facebook page of Marriott careers. This was
evident from the fact that the game was no longer available on Facebook and a null was
displayed when the link for the game was clicked. The game also involved inspecting the
food quality to meet the hotel standards which failed to create felt that the graphics and
game play looked like engagement with too did not attract the job seekers. Some observers
h the organization; something one would see on an Apple IIe , and many jobseekers who
tried the game would walk only focusing on away with a negative opinion of the Marriott
brand, particularly given how poorly they rated their food preparation own food within the
game. 28 According to Adam Kleinberg , CEO of Tractioni, “One of the was not creating
foundational concepts in game design is gameplay. A game is structured play, usually for
fun. motivation or Gameplay is a player’s interaction inside the game… But in order for your
game — or your interest gamified non-game experience — to be engaging, people have to
understand how to play it. You need to be as intuitive as an iPad to a 4-year-old. Or you
need to teach them the rules. Yet it’s a complete shocker that such a simple precept is so
regularly forgotten.”29 Educational material supplied by The Case Centre Copyright
encoded A76HM-JUJ9K-PJMN9I CoursePack code C-4099-384859-STU THE ROAD AHEAD
Marriott was faced with the challenge of making the game more interesting or developing a
real talent hunt app which could justify its recruitment needs and help it get the best
candidates who could prosper in its hospitality services. Either it could leave out the idea of
recruiting through gamification in view of past experience or it could go in for new ventures
in the gamification of recruitment. But it had the choice of opting for the better method.
Some analysts opined that Marriott should have stuck to the idea of gamification for
recruitment, making it a powerful tool through extensive research into more gripping ideas
in gaming. However, it needed an interesting game to start a new innings in recruitment
gamification, one which would suit its manpower requirements. It would be a big challenge
for Marriott to take the appropriate decision on gamification of recruitment. Given the
nature of the hospitality industry, and in particular the fact that a large proportion of
employees worked in direct contact with customers, attracting and retaining the right
people for the job became essential for an organization’s success and competitive
advantage. How Marriott would leverage gamification in recruitment still remained a
question mark as the response was lukewarm, resulting in the game being removed from its
Facebook page. Given the brand image of Marriott, it could attract more prospective
candidates if the strategy was well played. There was a need for the company to shake
hands with more efficient gaming associates to hatch a better game plan to get the best
talent in hospitality. h i The Apple IIe was launched by Apple Computer in 1983. An
advertising agency and innovation consultancy based in San Francisco. 9 Purchased by
Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, &
TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker,
from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these
parameters otherwise contact info@thecasecentre.org 415-096-1 415-096-1 Exhibit I
Source: www.imediaconnection.com/printpage/printpage.aspx?id=32280 and
www.springwise.com/marriottgame/marriottgame/ Exhibit II Marriott’s Distribution of
Rooms Worldwide North America LimitedService, 45% North America Full Service, 8% Asia
Pacific , 28% Unde r Constructi on 38% Caribbe an & Latin America , 6% Europe, 6% Middle
East & Africa, 7 % Conversio ns 7% 215, 000 Rooms in Total Signed 41% Approv ed 14%
Adapted from Teresa Cederholm, “Why a Strong Pipeline will Fuel Marriott’s Future
Growth,” www.marketrealist.com, Oct 14, 2014. 10 Purchased by Casey Kohlstruk for use
on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at
Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to
15-Dec-2021. Order ref F419917. Usage permitted only within these parameters otherwise
contact info@thecasecentre.org Educational material supplied by The Case Centre
Copyright encoded A76HM-JUJ9K-PJMN9I CoursePack code C-4099-384859-STU Images
from My Marriott Hotel game 415-096-1 Exhibit III (US$ in millions) 2010 2011 2012 2013
2014 Total Revenues 11,691 12,317 11,814 12,784 13,796 Operating Income 695 526 940
988 1,159 Net Income 458 198 571 626 753 Adapted from
www.investor.shareholder.com/MAR/reports.cfm Exhibit IV Educational material supplied
by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I CoursePack code C-4099-
384859-STU Images from the Perfect Travel Companion App Source:
www.androidfreeware.net/img2/marriott_international_android_4.gif and
www.androidfreeware.net/img2/marriott_international_android_2. gif 11 Purchased by
Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, &
TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker,
from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these
parameters otherwise contact info@thecasecentre.org Key Financials of Marriott
Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-
PJMN9I CoursePack code C-4099-384859-STU Source:
www.youtube.com/watch?v=nLouE7ZiYDc and marriotts-red-coat-direct-effects-you-and-
your-events/ 12 http://blog.socialtables.com/2013/05/10/how- Exhibit VI An Image from
Workspace on Demand App Source: http://news.marriott.com/2013/07/mobile-check-in-
for-mobile-travelers-marriott-hotels-offerssmartphone-users-convenient-easier-faste.html
Purchased by Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES,
VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis. Taught by
Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage
permitted only within these parameters otherwise contact info@thecasecentre.org 415-
096-1 Exhibit V Images from Red Coat Direct App Source from
https://itunes.apple.com/in/app/xplor-travel-adventure-game/id646951347?mt=8 13
Purchased by Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES,
VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis. Taught by
Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage
permitted only within these parameters otherwise contact info@thecasecentre.org
Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-
PJMN9I CoursePack code C-4099-384859-STU 415-096-1 Exhibit VII Images from the Xplor
Game 415-096-1 1 David Rodriguez, “Marriott launches Social Media Game called My
Marriott Hotel,” www.shoppingblog.com, June 7, 2011. 2 Alexandra Berzon, “Enough with
‘Call of Duty,’ Answer the Call in Room 417,” www.wsj.com, June 6, 2011. 3 “My Marriott
Hotel™ Opens its Doors on Facebook,” www.news.marriott.com, July6, 2011. 4
www.en.wikipedia. org/wiki/Marriott_International. 5 “Company Information,”
www.news.marriott.com, October 28, 2014. 6 “My Marriott Hotel™ Opens its Doors on
Facebook,” www.news.marriott.com, July 6, 2011. 7 Les Shu, “Rolling Solo at a Hotel?
Marriott Wants to Hook You Up (with Platonic Pals),” www.digitaltrends.com, December 19,
2014. 8 Matt Alderton, “New Marriott Meetings App Lets Planners Make Real time
Requests,” www.successfulmeetings.com, May 9, 2013. 9 “Welcoming the Collaboration
Generation into More Marriott Hotels — Workspace on Demand Expands,”
www.news.marriott.com, September 23, 2013. 10 Ibid. 11 “Xplor the World and Win!”
www.news.marriott.com, June 8, 2013. 12 Ibid. 13 “What is Gamification?”
www.engagementalliance.org, 2015. 14 Jessica Miller-Merrell, “Is Gamification in Recruiting
a Real Thing,” www.blogging4jobs.com, October 7, 2013. 15 “My Marriott Hotel™ Opens its
Doors on Facebook,” www.news.marriott.com, July 6, 2011. 16 www.facebook.
com/MarriottCareersIndia (Accessed on March 11, 2015) 17 Paul Slezak, “How Marriott
Hotels is Beating Facebook at Their Own Game in Social Recruiting,”
www.recruitingblogs.com, June 25, 2013. 18 Alexandra Guadagno , “A Foray into Social
Recruiting: The Untold Stories Behind “My Marriott Hotel,”” www.humanresourcesiq.com,
August 1, 2011. 19 Paul Slezak, “How Marriott Hotels is Beating Facebook at Their Own
Game in Social Recruiting,” www.recruitingblogs.com, June 25, 2013. 20 Andrea Siedsma,
“Marriott Hopes to Win with Facebook Game,” www.workforce.com, July 11, 2011. 21
Alexandra Guadagno, “A Foray into Social Recruiting: The Untold Stories Behind “My
Marriott Hotel,”” www.humanresourcesiq.com, August 1, 2011. 22 Geoff Newman, “Marriott
Launches Online Recruitment Game,” www.recruitmentgenius.com, June 16, 2011. 23
Altimeter Group’s blog, www. jaimyszymanski.com/tag/gamification/ 24 “Gamification: Is it
for Your Organization?,” www.astronsolutions.net, January 7, 2014 . 25 Andrea Siedsma,
“Marriott Hopes to Win with Facebook Game,” www.workforce.com, July 11, 2011. 26
Elizabeth DeMarco and Rachel Rossini, “Creative Recruiting: 7 Innovative Ways to Land
Your Dream Hire,” www.hrmorning.com, February 20, 2014. 27 Adam Kleinberg, “Brands
that Failed with Gamification,” www.imediaconnection.com, July 23, 2012. 28 Duncan Riley,
“Marriott Launches Lame Lemonade Stand Style Facebook Game, Compares it to Farmville,”
www.socialnewsdaily.com, June 8, 2011. 29 Adam Kleinberg, “Brands that Failed with
Gamification,” www.imediaconnection.com, July 23, 2012. 14 Purchased by Casey Kohlstruk
for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at
Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to
15-Dec-2021. Order ref F419917. Usage permitted only within these parameters otherwise
contact info@thecasecentre.org Educational material supplied by The Case Centre
Copyright encoded A76HM-JUJ9K-PJMN9I CoursePack code C-4099-384859-STU End Notes:
The written analysis should comply with the following guidelines: • 5 double-spaced pages
– not including the title page, the executive summary page and the reference/bibliography
pages o • • • • • IF YOU GO ABOVE 5 PAGES, I WILL STOP READING AND GRADE YOU ON
THE FIRST 5 PAGES! Arial, 12-point font 1-inch margins Include the names of all group
members of the title page For all other formatting use APA format The written analysis
should follow the structure provided CLASS READINGS: TALENT ACQUISITION:
RECRUITING & SELECTING Your Approach to Hiring Is All Wrong HBR-Capelli.pdf How to
Fix Your Hiring Process “HBR IdeaCast” https://podcasts.apple.com/us/podcast/hbr-
ideacast/id152022135?i=1000442688734 Rules for Effective Hiring — and Firing “HBR
IdeaCast” https://podcasts.apple.com/us/podcast/hbr-
ideacast/id152022135?i=1000466646743 WorkLife with Adam Grant Podcast: Reinventing
the Job Interview
https://www.ted.com/talks/worklife_with_adam_grant_reinventing_the_job_interview
CASE STUDY: Beyond Resumes: Marriott Using Gamification to Recruit Top Talent in
Hospitality Required Sections I. Executive Summary Guidelines • One to two paragraphs in
length • On cover page of the report • Briefly identify the major problems facing the
manager/key person – or simply the main issue/concern of the case • Summarize the
recommended plan of action and include a brief justification of the recommended plan
Required Sections II. Statement of the Problem III. Causes of the Problem Guidelines • State
the main problem/s facing the manager/key person • Conclude with the decision facing the
manager/key person – or what’s the next action that needs to happen to address the main
issue/concern of the case • • • IV. Decision Criteria and Alternative Solutions • • • • V.
Recommended Solution, Implementation & Justification • • • • Provide a detailed analysis of
the main problem/s identified in the Statement of the Problem In the analysis, apply
theories and models from the text and/or readings – if relevant! Support conclusions and
/or assumptions with specific references to the case and/or the readings Identify criteria
against which you evaluate alternative solutions (i.e. time for implementation, tangible
costs, acceptability to management) Include two or three possible alternative solutions
Evaluate the pros and cons of each alternative against the criteria listed Suggest additional
pros/cons if appropriate Identify who, what, when, and how in your recommended plan of
action Solution and implementation should address the main problem/s and causes
identified in the previous section The recommended plan should include a contingency
plan(s) to back up the ‘ideal’ course of action Using models and theories, identify why you
chose the recommended plan of action – why it’s the best and why it would work Required
Sections VI. External Sourcing VII. Spelling Grammar and Presentation Guidelines • 2
external sources (in addition to class readings) should be referenced to back up your
recommendations or to identify issues. This information would be ideally sourced in
current journals, magazines and newspapers and should reflect current management
thought or practice with respect to the issues identified. Your case analysis should: • • • • • •
• Include the 5 sections listed in the outline Be double spaced and the pages should be
numbered Have 1-inch margins – top bottom left and right Use 12-point font size Be free of
spelling errors For other formatting, use APA guidelines Present the executive summary on
the first page of the assignment along with your name, the name of the course and the due
date Tony Hsieh at Zappos: Structure, Culture, and Change I. Executive Summary The shoe
company, Zappos, has struggled financially since its inception. However, CEO, Tony Hsieh
has kept the company strong through his devotion to the company’s person-centered
culture toward both employees and customers. Currently, the organization is
simultaneously being acquired by Amazon and shifting toward a culture of holacracy, in
which individual employee freedom takes precedence over hierarchy, upper-level decision
making. After Hsieh began the cultural shift via emails to his employees, however, this
resulted in a significant number of employees resigning. In turn, this employee attrition is
threatening the success of the Amazon acquisition. Now, Tony Hsieh must decide how to
proceed with both the cultural shift and the Amazon acquisition while considering the use
of limited resources, long-term financial outcomes, the impacts on employee wellbeing, and
approval all stakeholders (Askin et al., 2016). Considering the benefits and detriments of
holacracy, it is recommended that Hsieh abandons holacracy altogether to regain the
approval of his employees, the media, and customers, to maintain employee wellbeing, and
ensure the financial success of the Amazon acquisition. TONY HSIEH AT ZAPPOS 2 II.
Statement of the Problem The well-known shoe company, Zappos, is often referred to as the
“Amazon of Shoes” (Askin et al., 2016). Ever since Zappos was founded by Chief Executive
Officer (CEO), Tony Hsieh, the company has faced several financial challenges. However,
what kept Zappos afloat and thriving was its culture. While many companies today thrive on
efficiency and ease for customers, Zappos’ culture was one of person-centered interactions,
both for the customers and the employees. The company incentivized employees’ hard
work and growth within the company, and Tony Hsieh even incentivized employees’
resignations if they felt the company and the work was unsuited for them. This person-
centered culture was additionally reflected in the company’s cultural shift in 2015, in which
Hsieh rapidly pushed this organizational culture toward holacracy. Holacracy is a culture in
which employees do not have designated roles or hierarchies, and their personal agencies
dictate decision-making rather than being at the discretion of higher-level management.
Despite the welcoming appeal of holacracy and the freedom it grants employees, many
employees disagreed with this cultural shift due to its lack of structure and potential
negative consequences for employee well-being. Consequently, 14% of employees left the
company as they accepted Hsieh’s incentives for their resignation. During this cultural
change and its massive hit to the company’s workforce, Zappos was also undergoing
another period of change through its acquisition by Amazon. These two organizational
changes, however, disagree with one another. The Amazon acquisition, its required online
shift, and its resulting financial gain is now threatened by the company’s employment
decline and criticism from employees, media, and customers. Now, Tony Hsieh must decide
how to move forward with the structural and cultural changes of Zappos while maintaining
both approval from employees and customers and the financial stability granted by Amazon
(Askin et al., 2016). TONY HSIEH AT ZAPPOS 3 III. Causes of the Problem The problem of
Zappos’ acquisition by Amazon being threatened by the company’s cultural shift toward
holacracy has been caused by the company’s financial needs, the coinciding untimeliness of
the Amazon acquisition and cultural shift, the company’s managerial needs, and the
widespread negative perceptions of holacracy both internally and externally (Askin et al.,
2016). Foremost, Zappos has historically faced many financial struggles, even going so far as
to require financial support from Tony Hsieh himself. Considering these past financial
challenges, it makes sense that the company will benefit from the Amazon acquisition, as it
will make the organization more accessible to customers and thus more financially viable
(Askin et al., 2016). However, while the Amazon acquisition is necessary, it was a poor
decision on behalf of Hsieh to push for the cultural shift during the Amazon acquisition
(Askin et al., 2016). The acquisition required commitment from all employees, which the
cultural shift decreased significantly. Many employees, especially in the technology
department, saw the need for organizational management, hierarchy, and unified decision
making, especially during an acquisition. Considering their company’s large size and
demands, it required structure. Additionally, the cultural shift created concerns for
employees’ wellbeing, as The Downtown Project’s similar shift toward holacracy resulted in
three employee suicides. Therefore, many employees criticized the cultural shift and
decided to leave the organization, as well as why the cultural shift gained significant media
attention (Askin et al., 2016). Due to Zappos’ financial needs which would benefit from the
Amazon acquisition, the untimeliness of both the Amazon and cultural shifts, and the
internal and external criticism due to the company’s organizational needs, Tony Hsieh must
make a decision to mend their current organizational issue (Askin et al., 2016). TONY HSIEH
AT ZAPPOS 4 IV. Decision Criteria and Alternative Solutions Within the problem of Zappos’
acquisition by Amazon being threatened by the company’s cultural shift toward holacracy,
the decision criteria for each potential solution include the use of limited temporal, human,
and financial resources, long-term financial outcomes, the impacts on employee wellbeing,
and approval all stakeholders, including employees, media, and customers (Askin et al.,
2016). Considering these four decision criteria, two potential solutions to this problem
include 1) continuing to pursue a culture of holacracy or 2) transitioning away from
holacracy and toward a culture that balances hierarchy with employee-centered values. The
first potential solution of continuing to pursue a culture of holacracy within Zappos has
several benefits and detriments. First, this option allows the company to continue its
operations uninterrupted, maximizing Tony Hsieh’s, the employees’, and the company’s
limited time and financial resources (Askin et al., 2016). However, this option risks Zappos’
current limited human resources, as well as it jeopardizes the company’s future financial
outcomes. More specifically, the company has already struggled financially in the past, and
after the shift toward holacracy, employee numbers are dwindling, and the Amazon
acquisition may not go as planned. This is a major risk to the long-term financial outcomes
of Zappos, as Amazon would make Zappos’ products more accessible and the business more
profitable. This is supported by a recent Business Insider article (Insider Intelligence,
2022), which explains that Amazon’s sales of apparel and accessories accounted for almost
1/5th of all United States e-commerce sales of apparel and accessories. However, if the
Amazon acquisition fails, this may ultimately be better for employees’ mental health and
wellbeing, as Amazon employees frequently cite overwork and poor compensation as
contributors to their burnout and high turnover rate (Stone, 2022). While the mental health
of some employees may benefit if this shift toward holacracy causes the TONY HSIEH AT
ZAPPOS 5 Amazon acquisition to fail, Tony Hsieh must consider the approval of all
stakeholders, including employees, media, and customers. Disapproval from the media and
customers alike will most likely decrease the company’s sales, as well as disapproval from
employees will only create a lack of consensus. According to Gilbert (2018), organizational
consensus is a significant moderating variable that allow the workplace to be a comfortable,
welcoming place for employees to thrive. If Tony Hsieh wants a culture without a hierarchy
of decision-making, such a workplace culture will not survive if many employees do not
agree on that culture. While the second potential solution will require time and financial
resources to shift away from holacracy, a shift toward more organizational hierarchy will
benefit Zappos’ human resources, employee wellbeing, long-term financial outcomes, and
stakeholder approval. Foremost, the company will financially benefit from the Amazon
acquisition (Insider Intelligence, 2022), which is more likely to succeed without the
simultaneous shift toward holacracy, as previously stated. Additionally, as many employees
disagreed with the company’s shift toward holacracy due to its lack of structure and
potential negative impact on employee wellbeing, more employees (including those who
stayed and those who left the company) will support the company if it shifts away from
holacracy. As previously stated, Amazon employees do indeed report significant mental
health distress, which is a consequence that must be considered if Zappos forgoes holacracy
in favor of the Amazon acquisition. However, it is important to consider that other
companies who have adopted holacracy have seen significant declines in employee mental
health, including The Downtown Project, in which three employees ended their lives by
suicide (Bowles, 2014). In addition to the improved employee mental health that is
expected if Zappos shifts away from holacracy, many employees are also likely to approve of
a shift away from holacracy due to the company’s need for defined roles and hierarchical
TONY HSIEH AT ZAPPOS 6 decision making. As Leavitt (2003) explains, hierarchical
companies are efficient, “fulfill [employees’] deep needs for order and security,” and yet,
they are “capable of change.” In other words, if Zappos reintegrates the hierarchy they had
once established while also ensuring their employee-centered values that are at the center
of their mission, the company can simultaneously succeed financially, maintain
organizational security, and support employee wellbeing. Regaining approval from
employees will in turn regain approval from the media and customers. V. Recommended
Solution, Implementation, & Justification Considering these two potential options, it is
recommended that Tony Hsieh allows Zappos to transition away from holacracy and toward
a culture that balances hierarchy with employeecentered values. This solution is optimal,
foremost, as it will prevent the company’s shift toward holacracy from interfering with the
Amazon acquisition, which will provide Zappos with longterm financial benefits (Insider
Intelligence, 2022). Additionally, while employee wellbeing must be ensured after the
Amazon acquisition (Stone, 2022), moving away from holacracy and reintegrating some
hierarchy will provide the company with improved employee wellbeing, organized
structure, decision-making, and role delineation the company requires to succeed (Bowles,
2014; Gilbert, 2018; Leavitt, 2003). Therefore, organizational consensus in these areas will
allow grant the organization with approval from media and customers alike. Considering
this recommendation, it is vital for Tony Hsieh to release a statement via email to his
current employees and those who resigned. Within this email, Hsieh should discuss the
suicides at The Downtown Project, concern for employees’ wellbeing, and the need for all
employees to agree on such a large cultural decision in the future. Hsieh should allow the
organization to revert back to its previous employee-centered culture, including both its
hierarchy and focus on employee satisfaction (which should be measured through yearly
needs assessments). TONY HSIEH AT ZAPPOS 7 VI. References Askin, N., Petriglieri, G., &
Lockard, J. (2016). Tony Hsieh at Zappos: Structure, Culture, and Change. Reference no. 416-
0092-1. https://www.thecasecentre.org/products/view?id=137577 Additional references
have been removed to ensure anonymity of the author.

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Case Study Analysis.docx

  • 1. (Mt) – case study analysis 415-096-1 Educational material supplied by The Case Centre Copyright encoded A76HM- JUJ9K-PJMN9I CoursePack code C-4099-384859-STU Beyond Resumes: Marriott Using Gamification to Recruit Top Talent in Hospitality This case was written by Koti Vinodbabu, under the direction of Debapratim Purkayastha, IBS Hyderabad. It was compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. © 2015, IBS Center for Management Research IBS Center for Management Research (ICMR) IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501 203, Telangana, INDIA. Ph: +91 9640901313 E-mail: casehelpdesk@ibsindia.org case centre Distributed by The Case Centre www.thecasecentre.org All rights reserved North America t +1 781 239 5884 f +1 781 239 5885 e info.usa@thecasecentre.org Rest of the world t +44 (0)1234 750903 f +44 (0)1234 751125 e info@thecasecentre.org Purchased by Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these parameters otherwise contact info@thecasecentre.org IBS Center for Management Research Beyond Resumes: Marriott Using Gamification to Recruit Top Talent in Hospitality Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I CoursePack code C-4099- 384859-STU An issue of getting the new generation of workers interested in their organization and industry “As Marriott expands in growth markets outside the U. S., and as we seek to attract more Millennials – those between the ages 18 and 27 – to our workforce, we must find new ways to interest them in hospitality careers. This game [My Marriott Hotel] allows us to showcase the world of opportunities and the growth potential attainable in hospitality careers, especially in cultures where the service industry might be less established or prestigious.”1 – David Rodriguez, Executive Vice President for Global Human Resources, Marriott International. “Those are great because they brand the hospitality industry and get people thinking about hotels and travel, but I think people are smart enough to know. That’s why our game is so appealing. Not only am I having fun but I’m actually getting an understanding of what it takes to run a kitchen.”2 – Susan Strayer, Senior Director, Global Employer Brand and Marketing, Marriott International. Marriott International, Inc., the world’s largest hotel company, launched a social game on Facebooka called ‘My Marriott Hotel’ on June 6, 2011, to recruit the best candidates in hospitality. Developed in association with Evvivab, a consulting firm for developing corporate games,
  • 2. the concept of the game was similar to the Farmvillec game. ‘My Marriott Hotel’ players could create their own restaurant, where they would buy equipment and ingredients on a budget, hire and train employees, and serve guests (Refer to Exhibit I for images from the game). They earned points for happy customers and lost points for poor service. The game was posted on Marriott’s jobs and careers Facebook page. Marriott aimed to attract people who were interested in service/hospitality jobs. ‘My Marriott Hotel’ allowed players to run their own hotel virtually, hiring and firing employees, delivering food, and cleaning rooms. The happier the guests, the higher the points received, which meant that if the food was cooked better and eaten by customers, more points could be scored. The players could then click on “Do it for real” to be directed to the career page of Marriott. Marriott also experimented with gamification with a game called “Xplor” where the customers virtually visited five gateway cities and were given rewards for winning the game. Marriott was the first in the hospitality industry to utilize the increasing popularity of social media gaming to help generate an interest in hospitality careers.3 It had also developed different apps for customers which catered to their different needs. For instance, the ‘Red Coat Direct’ app streamlined the onsite requests of guests, ‘Work space on demand’ offered a space for meeting, and ‘The Perfect Travel Companion’ helped guests access the mobile check-in feature by downloading the free Marriott mobile app from the Apple iTunes Store or Google Play. a b c Facebook is an online social networking service headquartered in Menlo Park, California. Evviva is a US-based gamification company. Farmville is a farming simulation social network game developed by Zynga in 2009. 2 Purchased by Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these parameters otherwise contact info@thecasecentre.org 415-096-1 The game received mixed reactions from analysts, with some of them feeling that it was a good effort on the part of Marriott to attract youth to the hospitality industry. They felt that it was a good tool to catch the best talent in the hospitality industry. But others were dismissive. They contended that the plot and content of the game were below gaming standards. Also, they were of the view that the game might not generate an interest among the players as the tasks outlined were related to kitchen stuff, something that most youngsters preferred the least. Here, the applicability of social media for recruiting the best talent in the hospitality was also a question, given the negative reactions from some analysts as well as the removal of the game from Facebook page of Marriott careers. Some analysts opined that the game was neither appealing nor interesting and that it needed more technical improvement. Marriott faced the challenge of modifying of the game in such a way that it fulfilled its recruitment objective of finding the best talent in the hospitality industry. BACKGROUND NOTE Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I CoursePack code C-4099- 384859-STU Marriott International, Inc., headquartered at Bethesda, Maryland, USA, was a hospitality company that owned hotels and related hospitality services. It was founded by J. Willard Marriott, and as of 2015, was led by his son, Executive Chairman Bill Marriott, and President and Chief Executive Officer, Arne Sorenson. Marriott International had more than 4,087 assets in over 80 countries and territories around the world, over 697,000 rooms (as
  • 3. of July 2014), and an additional 195,000 rooms that were in the process of development4 (Refer to Exhibit II for Marriott’s Distribution of rooms worldwide). Marriott held 18 brands in the hospitality industry and had been serving the customers for 80 years. The Marriotts later expanded their company into a chain of restaurants and hotels. They opened their first hotel, the Twin Bridges Marriott Motor Hotel, in Arlington, Virginia, in 1957. Their second hotel was the Key Bridge Marriott in Arlington, Virginia. This became Marriott International’s longest operating hotel, celebrating its 50th anniversary in 2009. The company operated franchise hotels and licensed vacation ownership resorts under 18 brands: Marriott Hotels, The Ritz-Carlton, JW Marriott, Bulgari, EDITION, Renaissance, Gaylord Hotels, Autograph Collection, AC Hotels by Marriott, Moxy Hotels, Courtyard, Fairfield Inn & Suites, Spring Hill Suites, Residence Inn, Towne Place Suites, Protea Hotels, Marriott Executive Apartments, and Marriott Vacation Club timeshare brand. Approximately 330, 000 people worked at Marriott managed and franchised hotels around the globe. 5 The company’s net income amounted to US$ 192 million for the third quarter of 2014 (Refer to Exhibit III for the key financials of Marriott). The company was named an “All Star” by Fortune magazine and was part of the “Best Places to Work” list every year since the list began to be published in 1998. Marriott was also recognized by BusinessWeek as one of “The Hottest Employers of 2010.”6 MARRIOTT AND SOCIAL MEDIA Social media were communication tools that allowed people to create, share, or exchange information, ideas, and pictures/videos in virtual communities and networks. Many companies had started using mobile and web-based technologies to create interactive programs through which individuals and communities could share, create, and modify the content. In business, social media was used to market products, promote brands, and connect to current customers and start new businesses. Marriott had chosen social media as its medium to serve the customers efficiently. Since the service involved convenience and saving of time, Marriott came up with many applications through social media and gaming. Its association with social media generated a huge response from its followers. Marriott’s Facebook page had 1,874,121 likes and 4,041,532 visits while its Twitter account was followed by 171,842 people as on March 2015. Its major move into gamification came when it introduced a game on Facebook in 2011 for recruiting people. The company came up with various apps, including gaming apps. Again in 2011, Marriott released the 3 Purchased by Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker, from 1- Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these parameters otherwise contact info@thecasecentre.org 415-096-1 app ‘The Perfect Travel Companion’, which allowed mobile check in and out. Another app ‘Red Coat Direct’, which was released in August 2012, dealt with the needs of guests while they were on site. Marriott also released an app called ‘Workspace on Demand’ in 2013 which was useful for booking corporate meetings. And the gaming application Xplore released in August 2013, allowed customers to make a virtual tour of five gateway cities and earn rewards which could be redeemed for a stay in any of the Marriott hotels. Said Paul Cahill, Marriott’s Senior Vice President for Global Brand Management. “People are living their lives today using social media to be more productive, to stay connected, to be more mobile, to be more social,
  • 4. and to be more collaborative. It’s a real-time networking, social networking tool that we think is power for people who travel to different cities on a regular basis, who are looking to find other like-minded people who have similar interest.”7 Marriott even came up with a Facebook game called ‘My Marriott Hotel’ which was aimed at aiding its recruitment efforts. Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K- PJMN9I CoursePack code C-4099-384859-STU THE PERFECT TRAVEL COMPANION In its efforts to make vacations better Marriott introduced the Perfect Travel Companion app in August 2011, with useful features such as mobile check-in, real-time room ready alerts, and mobile checkout (Refer to Exhibit IV for images from the app). It allowed the customers to make reservations at 3, 600 hotels and resorts in 71 countries, 24/7, from anywhere, enrol in Marriott rewards, browse hotel photos, maps, city guides, and amenities, or call a hotel. They could also make special requests for early check-in, extra pillows or towels, high or low floor, etc. and view upcoming reservations and make cancellations. This app was available in English, French, Spanish, German, and Chinese. “We know that more than half of hotel reservations made using mobile devices are for same-day stays. This shows how rushed mobile travellers are; speed and choice are critical,” said Shafiq Khan, senior vice president of e-commerce, Marriott International. “With a few taps, you can now get immediate access on-the-go to our 3, 600 hotels across 13 brands in 71 countries.” RED COAT DIRECT Marriott rolled out the free Red Coat Direct app in August 2012to cater to the needs of guests on site. It sent a personalized version of the app to planners three days before their meetings (Refer to Exhibit V for images from the app). They could use it to edit their meeting requests and preferences just before the event or while on site. For example, they could request an adjustment in room temperature or a change in meal time or specify the ingredients of a coffee. The app remained available for several months after the meeting, so planners could also use it to reconcile their bills. “The way people work is more mobile and global, but until now, organizing meetings has been stuck in the past. We are rethinking all aspects of meetings from the physical space to the experience for both attendees and planners, and looking for ways to enable and inspire people to do their best work,” said Peggy Roe, vice president, global operations services for Marriott Hotels. “Red Coat Direct’s technology allows planners to continually adjust requests without missing a minute of their meeting or keeping other professionals waiting.”8 The app was personalized to each organizer’s specific meeting. Requests could be made up to three days before the meeting and then throughout the meeting. Once the request had been made, it was routed to the event manager and the department that could fulfil the request. WORKSPACE ON DEMAND Workspace on Demand, powered by Liquidspaced, an application to book meetings on demand, was another app by Marriott, released in January 2013. This app allowed guests to book both free and paid spaces like booking a guest room (Refer to Exhibit VI for images from the app). Marriott allowed booking of work space through this app and provided amenities like guaranteed space with Wi-Fi and power, access to printers and food/beverage, and booking by the hour or by the d Liquidspace is an US based work space provider company. 4 Purchased by Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021. Order ref F419917.
  • 5. Usage permitted only within these parameters otherwise contact info@thecasecentre.org 415-096-1 adopting to the tech use of this generation, created several apps day. It offered both free and paid reserved spaces. “The trends are telling. The way people work is changing. And we’re right there with them. Through Workspace on Demand by Marriott, we are enabling people to find and book workspaces when they need them,” said Cahill. “We are challenging the notion that you have to be a hotel guest to use the hotel. We are opening the doors and saying, ‘Come in, work in our lobbies and use our free Wi-Fi. Gather your team in our meeting rooms, whether it is all day or just for an hour.’ We made the process easy and are giving our customers the ability to book on whatever device they prefer.”9 Marriott associated with Steel casee to come up with appealing interiors for the work spaces. “The world of work is transforming at an accelerating rate,” said Mark Gil breath, founder and CEO of Liquid space. “Modern professionals are unplugging from cube farms and private offices and are leaving work to get work done. They are taking ownership of the choice over where and how they work on a day to day basis. Marriott has identified this shift and recognized the opportunity for their hotels to be not just a place to sleep but also a great place to get work done. The combination of their trusted brand, service level, and property portfolio makes them a compelling new entrant in the workspace industry.”10 Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K- PJMN9I CoursePack code C-4099-384859-STU XPLOR The Xplor game, which was released in August 2013, allowed travellers to virtually visit cities and win rewards (Refer to Exhibit VII for images from the game). Stephanie Linnartz, Executive Vice President & Chief Marketing and Commercial Officer, Marriott International, said, “We see guests effortlessly blending work and play in a global, mobile world, they embrace technology as a central part of their lifestyle”11. Xplor was targeted at travellers in the age group of 18-46 years, who spend more money on travelling. It could be downloaded from the Apple store. In the game, the players roamed through five gateway cities –New York, Paris, Dubai, São Paulo, and Beijing. They had to complete the sightseeing challenges, solve puzzles, and answer questions about different facts related to the sites they visited. They competed to win Marriott Rewards points redeemable for stay at more than 3,700 hotels around the world. Marriott gave 1 million reward points per each city, which added up to a total of 5 million points for five cities. Gamers who completed the entire game won one of three prizes: one lucky Grand Prize Winner collected 200, 000 Marriott Rewards points and an airline ticket for a trip around the world, while two RunnersUp received 150,000 Marriott Rewards points each. The player could select an avatar for himself/herself from the different characters with different styles which were displayed in the game. They had to search for a wealthy Aunt Sophia starting from New York, meet different characters, collect points, and get their passports stamped. David Rodriguez, executive vice president for global human resources at Marriott International, said, “Social gaming is part of our innovation strategy to engage customers and attract the next generation of social, mobile travellers and employees to Marriott with more than half a billion people playing social games globally – this is an exciting new channel for our company to promote travel and engage with people.”12 GAMIFICATION OF RECRUITMENT Recruitment referred to the process of attracting, selecting, and appointing the right candidate for the right job in the organization. According
  • 6. to Dale Yoder, “Recruitment is a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force.” It started when new employees were needed because either an existing one had left the organization or some new work had to be accomplished. It ended when the new employees joined the organization, thereby fulfilling the manpower requirements. The criteria for selection depended on the company’s policy of recruitment as well as job requirements. There were several approaches in recruitment like internal sources where the recruitment was done e Steelcase Inc. is a global company headquartered in Michigan, USA that develops and manufactures furniture, interior architecture, and technology products and services for corporate offices. 5 Purchased by Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these parameters otherwise contact info@thecasecentre.org 415-096-1 415-096-1 Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I CoursePack code C-4099-384859-STU Gamification referred to the concept of applying game mechanics and game design techniques to engage and motivate people to achieve their goals. Richie Etwaru, Director of Social Enterprise at UBS, said, “Gamification unlocks a new category of incentives for organizations to use in encouraging and celebrating preferred employee behaviours.”13 Gamification was different from gaming. It was to take the essence of the addictive factors of gaming and apply them to organizational factors like employee performance improvement, better knowledge about the customers, and business benefits. Gamification was the tool for employees to fulfil their sense of status and achievement. According to an online article in tnoozf, a study conducted by Gigyag in 2013 showed the following: “Gamification improves the engagement by one third, with online not just satisfied, commenting improving by 13%, social media sharing improving by 22%, and content discovery engaged improving by a whopping 68%”. It was rewarding the employees in terms of their achievement of results. Businesses could use gamification to drive desired user behaviors that were advantageous to their brand. One common technique of gamification was to increase engagement by rewarding users who accomplished the desired tasks. According to Jessica Miller-Merrell, founder of Blogging4Jobs.com, “The other major component that goes along with this is that gamification does what interviews and pre-employment tests can’t. It can evaluate problem solving, quick thinking, time management, and many other leadership-essential qualities that just can’t be measured with a multiple-choice test”. 14 Companies like Marriott International used gamification to attract prospective candidates. The idea was that the My Marriot Hotel game allowed players to see what it was like to manage a hotel. The company expected playing the game to give a boost to the job seekers’ interest in pursuing a career in hospitality. The growing interest in gamification originated from a desire among companies to increase engagement levels among employees and in that process, bring a system of rewards and recognition into the workplace. Though companies had been using games to recruit for some time, with social networking and application development technologies, the process had become more effective over time. Google, Inc., for example, installed a
  • 7. billboard in Silicon Valley with a tough math question that led users through a series of challenges. Candidates who solved these would get a job application and were eligible for screening. Domino’s Pizza developed a game called Pizza Hero where one could perform the role of a pizza maker and make items. The app let the candidate makes pizzas according to the specification of the orders. If he/she was up to the standards, he/she could apply for a job at the local Domino’s pizza center. PricewaterhouseCoopers used Multipoly, its game for selection, which had candidates play in a virtual reality work environment receiving missions, attending trainings, negotiating with clients, and solving business problems to earn points toward getting hired. The US Army earlier used games for training purposes, but later started using gamification to attract new recruits and promote awareness about the U. S. armed forces. This effort was initiated in 1999 and the first version was released in 2002. By 2008, four transportable “Virtual Army Experience” units were hitting shopping malls and public events. More than a decade in the making, the US Army had turned its knowledge and experience of training games into a powerful recruiting tool. Marriott needed more than 50, 000 people per year to fill positions in its hospitality division and those employees also needed training. So the company developed the game, My Marriott Hotel, which let the job seekers play various hotel roles and develop a basic understanding of how they worked before applying for a job. f g Tnooz is a global provider of news, analysis, commentary, education, data and business services to the travel, tourism and hospitality industry based in the US. Gigya is a US-based technology company that offers a customer identity management platform for businesses. 6 Purchased by Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these parameters otherwise contact info@thecasecentre.org through employee referrals. In outsourcing, this was done through on-campus interviews, employment agencies, internet recruiting, and social recruiting where the social networking sites were used for sourcing job seekers. Internet recruiting involved sourcing the candidates from different job sites by subscribing to them. 415-096-1 Worldwide, online games had surpassed personal e-mail to become the second most popular activity on the web, accounting for 10 percent of the time spent online. Social networking sites such as Facebook, which had more than 500 million active users by mid- 2011, accounted for more than 25 percent of the time spent online. 15 Marriott had set up one of the best Facebook recruitment pages, which by mid-2011, had 50, 000 people interacting with the page every week. This was more than the equivalent of a third of their actual work force. As on March 11, 2015, it had 1, 216, 592 likes.16 Marriott aimed to attract people who were interested in other people and in service/hospitality jobs. The selection of Facebook as a platform, as opposed to Twitter or LinkedIn or Google+, was a deliberate move by the company as it identified that the majority of its employee-types used Facebook and would search for information through it. IT companies were said to be having success with Twitter whereas professionals such as lawyers and marketers were found through LinkedIn. Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I CoursePack code C-4099-384859-STU Some analysts said it was an interesting question whether Marriott first thought of the catchphrase ‘Where I Belong’, the
  • 8. tag line of the Marriott’s recruitment ad, in response to the success of social media with its target group or whether it began to focus on social media because of its core value of creating a sense of belongingness among employees towards Marriott. Either way, Marriott effectively tied one of its core values in with its recruiting goals through the ‘Where I Belong’ campaign, encouraging current employees to upload a photo of themselves and a sign with their name on it on a dynamic page of its Facebook platform, they said. 17 BEHIND THE SCENE OF ‘MY MARRIOTT HOTEL’ With the objective of recruitment, Marriott decided to try something new other than the traditional recruiting practices like sourcing through internal and external avenues. While exploring new methods of recruitment, Marriott engaged professional consultants to formulate strategies which would connect them with employees in Indian and Chinese markets. In Marriott’s opinion, these markets were struggling with a lack of talent in hospitality and the institutions which provided training in hospitality in these countries were not very professional. Susan Strayer (Strayer), Senior Director, Global Employer Brand and Marketing for Marriott International, said, “We really have a responsibility to pay attention to the markets in which we are growing.”18 This led to creation of the game to attract the attention of job seekers in growing markets like India and China. In the process of researching the problem of youth not getting attracted to hospitality career, Marriott found that young people in the 17-24-year-old age group were moving to cities from other areas and using social networks like Facebook to look for new jobs.19 “We worked with Evviva Brands and traveled around the world last year to spend time with our associates and talk to them about what they do outside of work, how are they using social media, and how they felt about Marriott and we wanted to uncover some patterns. For example, we found that in the Middle East, Facebook is the No. 1 activity outside of work. That was great fodder for us,”20 said Strayer. According to some analysts, Marriott would have arrived at the conclusion that traditional interviews were not serving the purpose of picking the best talent as they did not provide employers with enough information about the candidate. And it led to a company-employeeposition mismatch in most of the companies. David Kippen (Kippen), CEO for Evviva, played a key role in formulating the game. During a hotel stay in Mumbai, India, Kippen saw groups of people outside staring curiously at the hotel. He asked an associate about this behaviour. The hotel employee said the crowds were curious as to what went on inside the hotel. It seemed to Kippen that it was a dream for most people in India and China to stay in hotels unlike Americans who grew up spending vacations and staying in hotels and had an understanding of hospitality. Kippen wondered what would happen if they were able to bring the inside of the hotel to those who had no other way of entering the hotel. “It suddenly 7 Purchased by Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these parameters otherwise contact info@thecasecentre.org MARRIOTT’S FACEBOOK RECRUITMENT PAGE became clear to me that if I were a young, eager, bright Indian man or woman at their target age (17-24), this would not be a place that I could go. I couldn’t even envision myself there,”21 said Kippen. By playing it, that would make it easier to imagine themselves there. Then, they could click on a tab that says ‘Try It For Real,’ and that would
  • 9. lead them to get an interview and start a conversation with recruiters. This central idea led to the creation of the ‘My Marriott Hotel’ game in 2011. Marriott had spent 10 months developing its Facebook game and Facebook career page. The purpose of the game was to give a glimpse of what happens in the hotel and to encourage the youth to join hospitality. Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K- PJMN9I CoursePack code C-4099-384859-STU HOW ‘MY MARRIOTT HOTEL’ PLAYED The game was offered in five languages, namely, English, Spanish, French, Arabic, and Mandarin. Players earned points for happy customers but lost points for poor service. They were also rewarded when their operation turned a profit. Marriott planned to add other hotel departments to later versions of the game, and a mobile phone version was also scheduled for launch in 2012. The initial version included a game which depicted a Marriott kitchen. Players had to handle all the responsibilities of a hotel manager. The players bought ingredients after choosing the best quality and price. They also hired staff based upon their experience and salaries from the options displayed. Then they bought stoves and kitchen utensils. They had to pass the customers’ orders to the cooks and inspect food for quality before delivering it to the customers. The happier the guests, the higher the points. If the players got the stipulated score, they could click on the tab “Do it for real”. Then they would be directed to the career page of Marriott and asked to submit their resume. As the game was connected with social networks, players could easily access it and refer friends to it. The game reflected the elements of gaming like goal setting, instant rewards, instant feedback, etc., which motivated the player to successfully execute the game. “It gives people a realistic view for the kind of decisions that have to be made and the pace of the work,”22 said Rodriguez. THE RESULTS The game received good response from the job seekers initially. It managed to attract more than 25, 000 players in the very first week. 23 It crossed 100, 000 page views with most of the users being from the US, Egypt, and India24. The game, which was officially launched on June 6, 2011, had players from 58 countries within the first 48 hours, including Germany, Hungary, Malaysia, and South Africa. That number had grown to 99 countries in the game’s third week. Jennifer Benz, president of San Francisco-based Benz Communications, said, “I think it’s unique to have an organization the size of Marriott to invest in something as dynamic as their own social media game. Within the next couple of years more companies will realize social media is not an option. They have to be engaging. They will realize that there are tremendous rewards and benefits.”25 According to Marriott, the game helped the company generate an interest in the hospitality industry, increase brand awareness, and identify talent across the globe. According to Francesca Martinez, Marriott VP of Human Resources, by early 2014, players from 120 different countries were playing the game at any given time. According to her, the game was successful in increasing traffic to the company’s career site, with approximately one-third of users clicking on the “try it for real” button on the top corner of the game, which redirected them to the company’s career site.26 The game was intended to motivate the youth in the countries where hospitality was not considered to be an adaptable platform for growth. However, according to some observers, the main problem with the game was that it lacked entertainment and it failed to sustain the interest of users. 27At the beginning, everything seemed quite straightforward to handle and the players felt like they were in complete
  • 10. control of the virtual kitchen. But soon enough, as in real life, orders accelerated, dishes needed to be constantly inspected for quality, there was a problem with a cook, 8 Purchased by Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these parameters otherwise contact info@thecasecentre.org 415-096-1 and before one knew it, the Marriott kitchen was running out of control. It was believed by some analysts that the game’s failure to sustain user interest was attributable to the fact that nothing much happened in the game and it was also removed from the Facebook page of Marriott careers. . The company said it would introduce more levels that would show different aspects of the hotel business but it did not get around to doing so. Job seekers might have felt that preparation of food items was not an interesting activity. This might be one of the reasons why the game did not prosper for long in the Facebook page of Marriott careers. This was evident from the fact that the game was no longer available on Facebook and a null was displayed when the link for the game was clicked. The game also involved inspecting the food quality to meet the hotel standards which failed to create felt that the graphics and game play looked like engagement with too did not attract the job seekers. Some observers h the organization; something one would see on an Apple IIe , and many jobseekers who tried the game would walk only focusing on away with a negative opinion of the Marriott brand, particularly given how poorly they rated their food preparation own food within the game. 28 According to Adam Kleinberg , CEO of Tractioni, “One of the was not creating foundational concepts in game design is gameplay. A game is structured play, usually for fun. motivation or Gameplay is a player’s interaction inside the game… But in order for your game — or your interest gamified non-game experience — to be engaging, people have to understand how to play it. You need to be as intuitive as an iPad to a 4-year-old. Or you need to teach them the rules. Yet it’s a complete shocker that such a simple precept is so regularly forgotten.”29 Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I CoursePack code C-4099-384859-STU THE ROAD AHEAD Marriott was faced with the challenge of making the game more interesting or developing a real talent hunt app which could justify its recruitment needs and help it get the best candidates who could prosper in its hospitality services. Either it could leave out the idea of recruiting through gamification in view of past experience or it could go in for new ventures in the gamification of recruitment. But it had the choice of opting for the better method. Some analysts opined that Marriott should have stuck to the idea of gamification for recruitment, making it a powerful tool through extensive research into more gripping ideas in gaming. However, it needed an interesting game to start a new innings in recruitment gamification, one which would suit its manpower requirements. It would be a big challenge for Marriott to take the appropriate decision on gamification of recruitment. Given the nature of the hospitality industry, and in particular the fact that a large proportion of employees worked in direct contact with customers, attracting and retaining the right people for the job became essential for an organization’s success and competitive advantage. How Marriott would leverage gamification in recruitment still remained a question mark as the response was lukewarm, resulting in the game being removed from its
  • 11. Facebook page. Given the brand image of Marriott, it could attract more prospective candidates if the strategy was well played. There was a need for the company to shake hands with more efficient gaming associates to hatch a better game plan to get the best talent in hospitality. h i The Apple IIe was launched by Apple Computer in 1983. An advertising agency and innovation consultancy based in San Francisco. 9 Purchased by Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these parameters otherwise contact info@thecasecentre.org 415-096-1 415-096-1 Exhibit I Source: www.imediaconnection.com/printpage/printpage.aspx?id=32280 and www.springwise.com/marriottgame/marriottgame/ Exhibit II Marriott’s Distribution of Rooms Worldwide North America LimitedService, 45% North America Full Service, 8% Asia Pacific , 28% Unde r Constructi on 38% Caribbe an & Latin America , 6% Europe, 6% Middle East & Africa, 7 % Conversio ns 7% 215, 000 Rooms in Total Signed 41% Approv ed 14% Adapted from Teresa Cederholm, “Why a Strong Pipeline will Fuel Marriott’s Future Growth,” www.marketrealist.com, Oct 14, 2014. 10 Purchased by Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these parameters otherwise contact info@thecasecentre.org Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I CoursePack code C-4099-384859-STU Images from My Marriott Hotel game 415-096-1 Exhibit III (US$ in millions) 2010 2011 2012 2013 2014 Total Revenues 11,691 12,317 11,814 12,784 13,796 Operating Income 695 526 940 988 1,159 Net Income 458 198 571 626 753 Adapted from www.investor.shareholder.com/MAR/reports.cfm Exhibit IV Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I CoursePack code C-4099- 384859-STU Images from the Perfect Travel Companion App Source: www.androidfreeware.net/img2/marriott_international_android_4.gif and www.androidfreeware.net/img2/marriott_international_android_2. gif 11 Purchased by Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these parameters otherwise contact info@thecasecentre.org Key Financials of Marriott Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K- PJMN9I CoursePack code C-4099-384859-STU Source: www.youtube.com/watch?v=nLouE7ZiYDc and marriotts-red-coat-direct-effects-you-and- your-events/ 12 http://blog.socialtables.com/2013/05/10/how- Exhibit VI An Image from Workspace on Demand App Source: http://news.marriott.com/2013/07/mobile-check-in- for-mobile-travelers-marriott-hotels-offerssmartphone-users-convenient-easier-faste.html Purchased by Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these parameters otherwise contact info@thecasecentre.org 415-
  • 12. 096-1 Exhibit V Images from Red Coat Direct App Source from https://itunes.apple.com/in/app/xplor-travel-adventure-game/id646951347?mt=8 13 Purchased by Casey Kohlstruk for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these parameters otherwise contact info@thecasecentre.org Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K- PJMN9I CoursePack code C-4099-384859-STU 415-096-1 Exhibit VII Images from the Xplor Game 415-096-1 1 David Rodriguez, “Marriott launches Social Media Game called My Marriott Hotel,” www.shoppingblog.com, June 7, 2011. 2 Alexandra Berzon, “Enough with ‘Call of Duty,’ Answer the Call in Room 417,” www.wsj.com, June 6, 2011. 3 “My Marriott Hotel™ Opens its Doors on Facebook,” www.news.marriott.com, July6, 2011. 4 www.en.wikipedia. org/wiki/Marriott_International. 5 “Company Information,” www.news.marriott.com, October 28, 2014. 6 “My Marriott Hotel™ Opens its Doors on Facebook,” www.news.marriott.com, July 6, 2011. 7 Les Shu, “Rolling Solo at a Hotel? Marriott Wants to Hook You Up (with Platonic Pals),” www.digitaltrends.com, December 19, 2014. 8 Matt Alderton, “New Marriott Meetings App Lets Planners Make Real time Requests,” www.successfulmeetings.com, May 9, 2013. 9 “Welcoming the Collaboration Generation into More Marriott Hotels — Workspace on Demand Expands,” www.news.marriott.com, September 23, 2013. 10 Ibid. 11 “Xplor the World and Win!” www.news.marriott.com, June 8, 2013. 12 Ibid. 13 “What is Gamification?” www.engagementalliance.org, 2015. 14 Jessica Miller-Merrell, “Is Gamification in Recruiting a Real Thing,” www.blogging4jobs.com, October 7, 2013. 15 “My Marriott Hotel™ Opens its Doors on Facebook,” www.news.marriott.com, July 6, 2011. 16 www.facebook. com/MarriottCareersIndia (Accessed on March 11, 2015) 17 Paul Slezak, “How Marriott Hotels is Beating Facebook at Their Own Game in Social Recruiting,” www.recruitingblogs.com, June 25, 2013. 18 Alexandra Guadagno , “A Foray into Social Recruiting: The Untold Stories Behind “My Marriott Hotel,”” www.humanresourcesiq.com, August 1, 2011. 19 Paul Slezak, “How Marriott Hotels is Beating Facebook at Their Own Game in Social Recruiting,” www.recruitingblogs.com, June 25, 2013. 20 Andrea Siedsma, “Marriott Hopes to Win with Facebook Game,” www.workforce.com, July 11, 2011. 21 Alexandra Guadagno, “A Foray into Social Recruiting: The Untold Stories Behind “My Marriott Hotel,”” www.humanresourcesiq.com, August 1, 2011. 22 Geoff Newman, “Marriott Launches Online Recruitment Game,” www.recruitmentgenius.com, June 16, 2011. 23 Altimeter Group’s blog, www. jaimyszymanski.com/tag/gamification/ 24 “Gamification: Is it for Your Organization?,” www.astronsolutions.net, January 7, 2014 . 25 Andrea Siedsma, “Marriott Hopes to Win with Facebook Game,” www.workforce.com, July 11, 2011. 26 Elizabeth DeMarco and Rachel Rossini, “Creative Recruiting: 7 Innovative Ways to Land Your Dream Hire,” www.hrmorning.com, February 20, 2014. 27 Adam Kleinberg, “Brands that Failed with Gamification,” www.imediaconnection.com, July 23, 2012. 28 Duncan Riley, “Marriott Launches Lame Lemonade Stand Style Facebook Game, Compares it to Farmville,” www.socialnewsdaily.com, June 8, 2011. 29 Adam Kleinberg, “Brands that Failed with Gamification,” www.imediaconnection.com, July 23, 2012. 14 Purchased by Casey Kohlstruk
  • 13. for use on the LEADING & MANAGING EMPLOYEES, VOLUNTEERS, & TEAMS (LMEVT), at Washington University in St. Louis. Taught by Professor Brad Tucker, from 1-Sep-2021 to 15-Dec-2021. Order ref F419917. Usage permitted only within these parameters otherwise contact info@thecasecentre.org Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I CoursePack code C-4099-384859-STU End Notes: The written analysis should comply with the following guidelines: • 5 double-spaced pages – not including the title page, the executive summary page and the reference/bibliography pages o • • • • • IF YOU GO ABOVE 5 PAGES, I WILL STOP READING AND GRADE YOU ON THE FIRST 5 PAGES! Arial, 12-point font 1-inch margins Include the names of all group members of the title page For all other formatting use APA format The written analysis should follow the structure provided CLASS READINGS: TALENT ACQUISITION: RECRUITING & SELECTING Your Approach to Hiring Is All Wrong HBR-Capelli.pdf How to Fix Your Hiring Process “HBR IdeaCast” https://podcasts.apple.com/us/podcast/hbr- ideacast/id152022135?i=1000442688734 Rules for Effective Hiring — and Firing “HBR IdeaCast” https://podcasts.apple.com/us/podcast/hbr- ideacast/id152022135?i=1000466646743 WorkLife with Adam Grant Podcast: Reinventing the Job Interview https://www.ted.com/talks/worklife_with_adam_grant_reinventing_the_job_interview CASE STUDY: Beyond Resumes: Marriott Using Gamification to Recruit Top Talent in Hospitality Required Sections I. Executive Summary Guidelines • One to two paragraphs in length • On cover page of the report • Briefly identify the major problems facing the manager/key person – or simply the main issue/concern of the case • Summarize the recommended plan of action and include a brief justification of the recommended plan Required Sections II. Statement of the Problem III. Causes of the Problem Guidelines • State the main problem/s facing the manager/key person • Conclude with the decision facing the manager/key person – or what’s the next action that needs to happen to address the main issue/concern of the case • • • IV. Decision Criteria and Alternative Solutions • • • • V. Recommended Solution, Implementation & Justification • • • • Provide a detailed analysis of the main problem/s identified in the Statement of the Problem In the analysis, apply theories and models from the text and/or readings – if relevant! Support conclusions and /or assumptions with specific references to the case and/or the readings Identify criteria against which you evaluate alternative solutions (i.e. time for implementation, tangible costs, acceptability to management) Include two or three possible alternative solutions Evaluate the pros and cons of each alternative against the criteria listed Suggest additional pros/cons if appropriate Identify who, what, when, and how in your recommended plan of action Solution and implementation should address the main problem/s and causes identified in the previous section The recommended plan should include a contingency plan(s) to back up the ‘ideal’ course of action Using models and theories, identify why you chose the recommended plan of action – why it’s the best and why it would work Required Sections VI. External Sourcing VII. Spelling Grammar and Presentation Guidelines • 2 external sources (in addition to class readings) should be referenced to back up your recommendations or to identify issues. This information would be ideally sourced in current journals, magazines and newspapers and should reflect current management
  • 14. thought or practice with respect to the issues identified. Your case analysis should: • • • • • • • Include the 5 sections listed in the outline Be double spaced and the pages should be numbered Have 1-inch margins – top bottom left and right Use 12-point font size Be free of spelling errors For other formatting, use APA guidelines Present the executive summary on the first page of the assignment along with your name, the name of the course and the due date Tony Hsieh at Zappos: Structure, Culture, and Change I. Executive Summary The shoe company, Zappos, has struggled financially since its inception. However, CEO, Tony Hsieh has kept the company strong through his devotion to the company’s person-centered culture toward both employees and customers. Currently, the organization is simultaneously being acquired by Amazon and shifting toward a culture of holacracy, in which individual employee freedom takes precedence over hierarchy, upper-level decision making. After Hsieh began the cultural shift via emails to his employees, however, this resulted in a significant number of employees resigning. In turn, this employee attrition is threatening the success of the Amazon acquisition. Now, Tony Hsieh must decide how to proceed with both the cultural shift and the Amazon acquisition while considering the use of limited resources, long-term financial outcomes, the impacts on employee wellbeing, and approval all stakeholders (Askin et al., 2016). Considering the benefits and detriments of holacracy, it is recommended that Hsieh abandons holacracy altogether to regain the approval of his employees, the media, and customers, to maintain employee wellbeing, and ensure the financial success of the Amazon acquisition. TONY HSIEH AT ZAPPOS 2 II. Statement of the Problem The well-known shoe company, Zappos, is often referred to as the “Amazon of Shoes” (Askin et al., 2016). Ever since Zappos was founded by Chief Executive Officer (CEO), Tony Hsieh, the company has faced several financial challenges. However, what kept Zappos afloat and thriving was its culture. While many companies today thrive on efficiency and ease for customers, Zappos’ culture was one of person-centered interactions, both for the customers and the employees. The company incentivized employees’ hard work and growth within the company, and Tony Hsieh even incentivized employees’ resignations if they felt the company and the work was unsuited for them. This person- centered culture was additionally reflected in the company’s cultural shift in 2015, in which Hsieh rapidly pushed this organizational culture toward holacracy. Holacracy is a culture in which employees do not have designated roles or hierarchies, and their personal agencies dictate decision-making rather than being at the discretion of higher-level management. Despite the welcoming appeal of holacracy and the freedom it grants employees, many employees disagreed with this cultural shift due to its lack of structure and potential negative consequences for employee well-being. Consequently, 14% of employees left the company as they accepted Hsieh’s incentives for their resignation. During this cultural change and its massive hit to the company’s workforce, Zappos was also undergoing another period of change through its acquisition by Amazon. These two organizational changes, however, disagree with one another. The Amazon acquisition, its required online shift, and its resulting financial gain is now threatened by the company’s employment decline and criticism from employees, media, and customers. Now, Tony Hsieh must decide how to move forward with the structural and cultural changes of Zappos while maintaining both approval from employees and customers and the financial stability granted by Amazon
  • 15. (Askin et al., 2016). TONY HSIEH AT ZAPPOS 3 III. Causes of the Problem The problem of Zappos’ acquisition by Amazon being threatened by the company’s cultural shift toward holacracy has been caused by the company’s financial needs, the coinciding untimeliness of the Amazon acquisition and cultural shift, the company’s managerial needs, and the widespread negative perceptions of holacracy both internally and externally (Askin et al., 2016). Foremost, Zappos has historically faced many financial struggles, even going so far as to require financial support from Tony Hsieh himself. Considering these past financial challenges, it makes sense that the company will benefit from the Amazon acquisition, as it will make the organization more accessible to customers and thus more financially viable (Askin et al., 2016). However, while the Amazon acquisition is necessary, it was a poor decision on behalf of Hsieh to push for the cultural shift during the Amazon acquisition (Askin et al., 2016). The acquisition required commitment from all employees, which the cultural shift decreased significantly. Many employees, especially in the technology department, saw the need for organizational management, hierarchy, and unified decision making, especially during an acquisition. Considering their company’s large size and demands, it required structure. Additionally, the cultural shift created concerns for employees’ wellbeing, as The Downtown Project’s similar shift toward holacracy resulted in three employee suicides. Therefore, many employees criticized the cultural shift and decided to leave the organization, as well as why the cultural shift gained significant media attention (Askin et al., 2016). Due to Zappos’ financial needs which would benefit from the Amazon acquisition, the untimeliness of both the Amazon and cultural shifts, and the internal and external criticism due to the company’s organizational needs, Tony Hsieh must make a decision to mend their current organizational issue (Askin et al., 2016). TONY HSIEH AT ZAPPOS 4 IV. Decision Criteria and Alternative Solutions Within the problem of Zappos’ acquisition by Amazon being threatened by the company’s cultural shift toward holacracy, the decision criteria for each potential solution include the use of limited temporal, human, and financial resources, long-term financial outcomes, the impacts on employee wellbeing, and approval all stakeholders, including employees, media, and customers (Askin et al., 2016). Considering these four decision criteria, two potential solutions to this problem include 1) continuing to pursue a culture of holacracy or 2) transitioning away from holacracy and toward a culture that balances hierarchy with employee-centered values. The first potential solution of continuing to pursue a culture of holacracy within Zappos has several benefits and detriments. First, this option allows the company to continue its operations uninterrupted, maximizing Tony Hsieh’s, the employees’, and the company’s limited time and financial resources (Askin et al., 2016). However, this option risks Zappos’ current limited human resources, as well as it jeopardizes the company’s future financial outcomes. More specifically, the company has already struggled financially in the past, and after the shift toward holacracy, employee numbers are dwindling, and the Amazon acquisition may not go as planned. This is a major risk to the long-term financial outcomes of Zappos, as Amazon would make Zappos’ products more accessible and the business more profitable. This is supported by a recent Business Insider article (Insider Intelligence, 2022), which explains that Amazon’s sales of apparel and accessories accounted for almost 1/5th of all United States e-commerce sales of apparel and accessories. However, if the
  • 16. Amazon acquisition fails, this may ultimately be better for employees’ mental health and wellbeing, as Amazon employees frequently cite overwork and poor compensation as contributors to their burnout and high turnover rate (Stone, 2022). While the mental health of some employees may benefit if this shift toward holacracy causes the TONY HSIEH AT ZAPPOS 5 Amazon acquisition to fail, Tony Hsieh must consider the approval of all stakeholders, including employees, media, and customers. Disapproval from the media and customers alike will most likely decrease the company’s sales, as well as disapproval from employees will only create a lack of consensus. According to Gilbert (2018), organizational consensus is a significant moderating variable that allow the workplace to be a comfortable, welcoming place for employees to thrive. If Tony Hsieh wants a culture without a hierarchy of decision-making, such a workplace culture will not survive if many employees do not agree on that culture. While the second potential solution will require time and financial resources to shift away from holacracy, a shift toward more organizational hierarchy will benefit Zappos’ human resources, employee wellbeing, long-term financial outcomes, and stakeholder approval. Foremost, the company will financially benefit from the Amazon acquisition (Insider Intelligence, 2022), which is more likely to succeed without the simultaneous shift toward holacracy, as previously stated. Additionally, as many employees disagreed with the company’s shift toward holacracy due to its lack of structure and potential negative impact on employee wellbeing, more employees (including those who stayed and those who left the company) will support the company if it shifts away from holacracy. As previously stated, Amazon employees do indeed report significant mental health distress, which is a consequence that must be considered if Zappos forgoes holacracy in favor of the Amazon acquisition. However, it is important to consider that other companies who have adopted holacracy have seen significant declines in employee mental health, including The Downtown Project, in which three employees ended their lives by suicide (Bowles, 2014). In addition to the improved employee mental health that is expected if Zappos shifts away from holacracy, many employees are also likely to approve of a shift away from holacracy due to the company’s need for defined roles and hierarchical TONY HSIEH AT ZAPPOS 6 decision making. As Leavitt (2003) explains, hierarchical companies are efficient, “fulfill [employees’] deep needs for order and security,” and yet, they are “capable of change.” In other words, if Zappos reintegrates the hierarchy they had once established while also ensuring their employee-centered values that are at the center of their mission, the company can simultaneously succeed financially, maintain organizational security, and support employee wellbeing. Regaining approval from employees will in turn regain approval from the media and customers. V. Recommended Solution, Implementation, & Justification Considering these two potential options, it is recommended that Tony Hsieh allows Zappos to transition away from holacracy and toward a culture that balances hierarchy with employeecentered values. This solution is optimal, foremost, as it will prevent the company’s shift toward holacracy from interfering with the Amazon acquisition, which will provide Zappos with longterm financial benefits (Insider Intelligence, 2022). Additionally, while employee wellbeing must be ensured after the Amazon acquisition (Stone, 2022), moving away from holacracy and reintegrating some hierarchy will provide the company with improved employee wellbeing, organized
  • 17. structure, decision-making, and role delineation the company requires to succeed (Bowles, 2014; Gilbert, 2018; Leavitt, 2003). Therefore, organizational consensus in these areas will allow grant the organization with approval from media and customers alike. Considering this recommendation, it is vital for Tony Hsieh to release a statement via email to his current employees and those who resigned. Within this email, Hsieh should discuss the suicides at The Downtown Project, concern for employees’ wellbeing, and the need for all employees to agree on such a large cultural decision in the future. Hsieh should allow the organization to revert back to its previous employee-centered culture, including both its hierarchy and focus on employee satisfaction (which should be measured through yearly needs assessments). TONY HSIEH AT ZAPPOS 7 VI. References Askin, N., Petriglieri, G., & Lockard, J. (2016). Tony Hsieh at Zappos: Structure, Culture, and Change. Reference no. 416- 0092-1. https://www.thecasecentre.org/products/view?id=137577 Additional references have been removed to ensure anonymity of the author.