Read the following case and answer the question at the end:

As Zappos made its push toward holocracy, Hsieh decided to rampup the efforts to an even higher level: Teal. Hsieh sent out a4,700 word e-mail to all employees entitled “Reinventing Zappos:The Road to Teal.” Teal, supposed to be the next stage ofdevelopment after holocracy, is characterized as “A new kind oforganization designed to enable ‘whole’ individuals (not narrowprofessional selves) to self-organize and self-manage to achieve anorganic organizational purpose.” In the memo, Hsieh essentiallytold the remaining employees to get on board or get out. Hsieh wasnot happy with the progress that had been made up to that point andwrote, “in order to eliminate the legacy management hierarchy,there will be effectively no more people managers.” John Bunch, theemployee in charge of the move to teal says, “Teal is the goal;holocracy is the system.”
Hsieh even went as far as to offer the equivalent of three months’worth of salary to employees who would quit the organization ifthey didn’t feel they could fit in. Over 200 employees (14 percent)took him up on the offer—a massive number of people given Zappos’snormal turnover rate of 1 percent annually. Clearly, not everyonefelt comfortable in an organization with no clear leadershipstructure and very little to no legitimate power. One departedemployee called holocracy “a social experiment [that] created chaosand uncertainty.” Others felt like “more employees are feeling likefavoritism [and management issues are] becoming a bigger problem.”CEO Tony Hsieh remains undaunted. Hsieh says, “The one thing I’mabsolutely sure of is that the future is aboutself-management.”
The move has not been bad for everyone. Less experiencedindividuals with less expertise have felt energized by theirability to speak up and have a voice. One employee whose prior bossblocked a job transfer stated that as soon as he figured holocracyout, “I was like, ‘Actually, my boss can’t tell me that.’” JakeMcCrea, who teaches new hires about Zappos culture, states,“Holacracy is like a sport or a new language. You can read aboutit, you can hear people tell you about it, you won’t understand ituntil you start using it.” Even through all the issues, Hsiehstated, “I’ve been surprised at how hard it is to let go of thepsychological baggage. In retrospect, I would have probably rippedoff the Band-Aid sooner.”

Do you think leadership skills would be more or less importantat Zappos under holocracy? How so?