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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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
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