11/20/16

Norman C. Irish
Ronnie (Rico) Lee Terrell

Pay Raise Worksheet

In order to properly distribute the $30,000 without an unbiased opinion I initially listed the
seven employees in a table containing only their output rating and their seniority. I then divided
the $30,000 by two, one going to seniority distribution and the other for output rating distribution.
For seniority, 1-5 years would receive $804.2, 6-10 years would receive $1608.57, and 11-15
years would receive $2412.86. This left $2935.90 to be distributed along with the output rating
$15,000, totalling to $17935.90 left for distribution.

From here, the two with the highest output rating would receive 50% of the $17,935.90,
split between them. The ones with average output (0.62-0.76) would receive 35% of the
$17,935.90, split between them. The ones with the lowest output (0.50-0.58) would receive %15
of the $17,935.90, split between them. Names were then added to the final summations of each.

Output Employee Output Years of Years Output Name Total

Performance Rating employment distribution Rating
Distribution Distribution

50% 1 0.86 12 2412.86 4483.98 Eric 6896.84

Cattalini

2 0.80 7 1608.57 4483.98 Chua Li 6092.55

35% 3 0.6 8 1608.57 2092.52 Sarah 3701.09

Vickers

4 0.64 11 2412.86 2092.52 Derek 4505.38

Thompson

5 0.62 3 804.2 2092.52 Victor 2896.72

Munoz

15% 6 0.58 15 2412.86 1345.19 David 3758.05

Bruce

7 0.50 1 804.2 1345.19 Marilee 2149.39

Miller
Zappos - The Supporting Case

1.) Evaluate whether you think Zappos is a responsive organization. How do you expect its
recent downsizing to affect its responsiveness?

In my personal opinion, I believe Zappos is a very responsive organization for the reason that its
employees main focus is the customer’s happiness not making a sale. When you cater to the
needs of the customer first instead of the company it allows Zappos to make quick decisions
with an effective bottom up approach of power and management.

I do not expect the recent downsizing to affect the company’s responsiveness much given the
reason that it did not outsource any of its call centers.

2.) How does human resource management reinforce Zappo’s core values?

Human resources reinforce Zappos core values by hiring employees that going in the direction
of the company’s vision. Zappo wants to hire employees that can think on their feet and interact
well with everyone, which is why the interview does not just stop in the tv show room but
continues in the cafeteria and taxi ride home.

3.) How well do you think Zappo’s human resource strategy supports the valuing of
employee diversity? What diversity issues does Zappos need to address?

I believe Zappo’s human resources would highly value diversity, given that they would put the
company's future in the hands of Tony Hsieh who is very different from your average successful
businessman. Having diversity in Zappo’s employment also makes it easier for the company to
connect with customers from varying backgrounds.

The only major diversity issue Zappos would have to address is to make sure that they pull
talent from all walks of life while making sure they can blend in with the current company
culture.