Don’t get too excited about the upcoming reorg at Zappos, in which CEO Tony Hsieh will get rid of all job titles and managers, and his 1,500 employees will work in a super-flat structure.
There will still be bosses, we hear. Those execs will be the ones deciding what everyone else gets paid, a source tells us.
When Quartz first reported that “Zappos’ traditional organizational structure is being replaced with Holacracy, a radical ‘self-governing’ operating system where there are no job titles and no managers,” we were curious to know who was going to be in charge of pay rates. After all, what employee wouldn’t want to be in charge of setting their own salary?
First we asked Zappos, but the company declined comment until next week. It’s still working out the details.
But a person familiar with Hsieh’s thinking tells us that some employees will be more equal than others. Despite their lack of titles, those execs will have broader responsibilities — including setting the pay structure for the people who are not officially beneath them.
And there will be special set of HR staff, who obviously will be signing off on wages and salaries.
The Holacracy is thus more about transparency and entrepreneurship inside the company than it is about equality among staff.