Gore Case Analysis
Bill Gore is a primary example of a unique, yet successful, approach on structuring his business using a lattice system. Lattice systems are organized to promote ingenuity and performance without hierarchy of authority (Grant, 2010, p. 412). Gore’s intent was to create an environment with self-managed associates pursuing personal commitments and working together to achieve diverse innovations (p. 412). The success of W.L. Gore & Associates exercising a lattice system structure has been admirable but this system has adverse effects including confusion of how an associate is paid for his contributions. In addition to maintaining Gore’s core vision to promote ingenuity and performance without hierarchy of authority, a compensation plan should be implemented relevant to qualifications, expertise and performance.
Synopsis of the Case
The beginning of W.L. Gore & Associates was a creation of a Teflon-insulated cable produced in Bill Gore’s home (Grant, 2010, p.411). Teflon was the fabric responsible for Gore’s subsequent innovations and patents. The business quickly reached a staff of 200 people when Gore noticed productivity and efficiency started declining (p. 412). Gore recognized the need for a management structure and created his own by adopting ideas from the lattice system (p. 412). Grant (2010) explained that Gore’s idea was to incorporate a structure that generated creativity and innovation while abstaining from authority by allowing his employees “to make a decision as long as it was fair, encouraged others and made a commitment to the company” (p. 412). This style was also united with Gore’s way of handling compensation. Since management was nonexistent, annual reviews were peer based and co...
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References
Compensation plan. (2012). BLR. Retrieved from http://www.blr.com/compensationtips/compensation-plan
Grant, R. M. (2010). W.L. Gore & Associates: Who’s in Charge Here? In Cases to accompany contemporary strategy analysis (pp. 249-263). UK: John Wiley & Sons Ltd.
Mayhem, R. (2012). Cons of lattice organizational structure. Small Business.Chron. Retrieved from http://smallbusiness.chron.com/cons-lattice-organizational-structure-3836.html
Smith, E. (2012). Examples of performance-based bonuses. Small Business.Chron. Retrieved from http://smallbusiness.chron.com/examples-performancebased-bonuses-24389.html
Vinson, M. (1996). The pros and cons of 360-degree feedback: making it work. The American Society for Training and Development. Retrieved from http://www.star360feedback.com/the-pros-and-cons-of-360-degree-feedback-making-it-work
If Beverly knew about this management styles before heading into the job at Gridlock Meadows she might have been more prepared for what was about to come. This paper might have come off a little bias but remember that each management style has its positive aspects as well as negative ones. The key is recognizing the management style and how to work with each one you may encounter.
Founded in 1869. With initial capital of one hundred thousand dollars ($100,000) the organization pioneered some unique leadership matrices which helped to foster a collaborative environment focusing on company success, customer retention and satisfaction and corporate pride. To further highlight these principles, executive positions were often shared by co-chairs as in the cases of - Weinberg and Whitehead together ran the company from 1976-1984 and later Friedman and Rubin who together led the fixed income division in 1984 and later the firm in 1990 (p 3). Through this initial co-presidency, fundamental values were further ingrained in the organization. This included a fourteen-point corporate code emphasizing teamwork, integrity, talent reputation and quality (Snook 2007). This construct is a solid example of Meredith Belbin’s Team Leadership Theory, key components of which include: seeking talent, building on diversity, and developing colleagues (Gosling, etal, 2003) By the mid ‘90s a series of partner-level committees were instituted, designed to provide “broader partner representation and oversee matters of strategic importance to the firm”. (p5). At a more junior-level, co-headships of product lines provided for complimentary skills in leadership along with cross-training between managers, making transitions easier if a team member left a role due to promotion or exiting the firm.
...uct their own projects, more emphasis should be placed on massive research ventures to create new products to put on the market as soon as possible. Finally, although the unusual organization of Gore has obviously benefited the company in many ways throughout its history, changes should be made to prevent turnover, especially among recently hired associates. Many associates that are lost in the first months after being hired have potential value to the company if more practices were undertaken to help guide them in their first months, at least until they were more comfortable with the unique work environment of Gore. Overall, W. L. Gore & Associates is in a very good position to continue on its current profits streak in the 21st century, and has relatively few problems to deal with in order to ensure that its profitable position will endure for generations to come.
Organizational culture at W.L.Gore & Associates can be described from the aspects of shared social knowledge within the organization from rules, norms and values that shaped attitude and behavior of its employees. When we look at the design of organizational structure at WL Gore & Associates Company, this is a company without any hierarchy or conventional structures, from the view of organizational ethics there is no formal code of ethics or a companywide mission statement. The business units under the W.L gore were also not required to have any code of ethics or mission statement .The people in the organization operated under a un-management style lattice structure.
L. Gore & Associates simply to avoid the structure of major companies but rather to create a company that supported his vision. Gore envisioned a company where all employees were creatively equal and where there is a limited hierarchy. He strived to eliminate bureaucracy from the workplace. Most importantly, Gore wanted to create a work environment that encouraged all team members to be innovative, take initiative, and work with passion. A work environment with so few rules and policies is tremendously irregular and difficult to control. How will employees compete tasks without being assigned and monitored by a supervisor? How are work place goals implemented if individual creativity and small group work is so highly encouraged? According to the vast majority of business/ workplace study, these factors most likely will result in an extremely ineffective workplace. However, one must consider the tradeoffs. While an experimental workplace seems idyllic, how can one maintain this unusual environment and maintain a successful work routine? Time- it takes weeks upon months for people to adjust to a new system (especially one as foreign as Gore’s). While Gore’s employees are adjusting, brainstorming and slowly creating their own
Not all strategies “fit” within the companies activities, some are hit and misses such as when Stewart placed Charles Koppelman to the board, where “he became chairman of the board in 2005, where he negotiated a paid consulting arrangement for himself. He was viewed as enabling Stewart’s self-regard as much as tending to th...
Like Frederick Taylor, Chester Barnard was concerned with management theory. An American business executive and public administrator, Barnard wrote the 1938 book called The Functions of the Executive which presented the theory of cooperation and organization. It also discussed the functions and methods of operation of executives in formal organizations. Unlike Taylor’s work that focused on approaches to organization, Barnard’s book concentrated on the operations of an organization and is based on years of observation of individuals and groups in actual organizations. “Barndard is widely credited with having originated the ‘systems’ approach to the study of organization” ( ). His work served as a bridge between Taylor’s Scientific Management
The corporate culture at W.L. Gore & Associates (Gore) is refreshingly different than that of other firms. Forgoing the more traditional organizational chart, the company describes itself as a “team-based, flat lattice organization” (W.L. Gore & Associates [Our Culture], 2011, para. 1). Its employees generally do not have job titles and are called “associates”; also favoring the term “sponsors” over bosses (Our Culture, 2011). While some businesses in today’s economic environment are just trying to survive, Gore takes a long-term view approach to decision-making that has helped it thrive for over 50 years (Our Culture, 2011). As a privately held company, it is also interesting that Gore’s culture provides for making a wide variety of information available to the public on its website. In addition to publishing information about its history, leadership, and associates Gore includes annual growth and revenue figures for the world to see. It is quite unusual for a non-public company, especially one of this significant size, to voluntarily make this information available to everyone including the competition. This sends a consistent message that strengthens and protects the organization’s well-deserved reputation for integrity among customers, associates, and vendors alike.
To remedy this, he stated that he burned all his books, DVD’s, and magazine articles regarding his work. He goes as far as to say his kids do not know what his profession is. This is so that they can lead happy lives without the worry that people are secretly comparing them to their father, who accomplished a great amount. The spirit of this action shows the core values that Ricardo has carried into his workplaces. Ideas of equality among employees, the importance of wisdom, and shared opportunity are the foundation of his motivation. Business’ should use Ricardo and his ideas as an example of how an organic corporate structure can be a good fit for some organizations. If the leaders of said organizations think that this type of structure may be a positive change for them, then they should make the leap of faith with no second thoughts. Many might fear the loss of control that comes with giving more power to your employees, but once the transfer of power is made the benefits become clear. Employees are not only more motivated to work, but because of this, they are now better
In human resources or industrial psychology, the 360-degree feedback, also known as the multi-rater feedback, the multi source feedback or the multi- source assessment is the feedback that comes from members of an employee's immediate work circle. Most often, the 360-degree feedback will include direct feedback from an employee 's sub-ordinates, the peers and supervisor as well as a self-evaluation. It also include in some cases and feedback from external sources such as customers and suppliers or other interested stakeholders. It may be contrasted with "upward feedback" where managers are given feedback only by their direct reports or a "traditional performance appraisal" where the employees are most often reviewed only by their managers.
Porter, M. E., 1999. The Five Forces that Shape Competitive Strategy. Harvard business review, p. 80.
significant activities in the strategic way better than the rivalry firms (Lüsted, 2012). It is
...provide incentives for excellence in a method where information will flow in the shortest possible time to the right targets for decision making. The leadership plays a crucial role in motivating people to extend and apply themselves in a non-traditional organization structure which will be discussed later on in this report. Leadership is also responsible in adopting what this case study terms as three generic strategies to protect its profits. The first one is teaming up with others in order to maximize chances of gaining a dominant design. The second one is blocking in which the firm ensures that it prevents others from imitating its innovation by the use of patents and other legal binding constrains to do so. The third strategy known as the ‘run’ in which the firm frequently introduces new products, cannibalizing its own products before anyone else does.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 25-40.
Feedback is cheap and powerful, but it is underused. Giving employees the feedback that they need and want is motivating and energizing and there is strong evidence that it will increase employee satisfaction