Week 3 - Application Assignment

After this week’s readings I wanted to learn more about W.L. Gore & Associates. Gore’s structure is very unique in the sense that it does not have a traditional organizational structure and has some similarities with it’s structure as 3M and Apple, Inc.. How do these major companies stay relevant, innovative and ahead of the game in their industries without a set structure, policies and a chain of command. Why do organizations with an organizational structure in place, not as viable or cohesive?

"Gore's unique, flat, "lattice" culture stems from the four core values put in place by founder Bill Gore that were meant to foster a creative and energizing work environment. It's a culture that, without HR's commitment to those values, would be doomed for failure." (Anfuso, 1999) "A flat organization refers to an organization structure with few or no levels of management between management and staff level employees. The flat organization supervises employees less while promoting their increased involvement in the decision making process." (Meehan, ) "The structure within the lattice was complex and evolved from interpersonal interactions, self-commitment to group responsibilities, natural leadership, and group-imposed discipline. In the lattice system, associates who had answers gained followers, and therefore became leaders." (Townsend, 2000)

I looked at my organization and it’s hierarchical structure. "A hierarchical organization follows the layout of a pyramid. Every employee in the organization, except one, usually the CEO, is a subordinate to someone else within the organization. The layout consists of multiple entities that descend into the base of staff level employees, who sit at the bottom of the pyramid." (Meehan,) The flat organizational structure would not work for my company, however, I do think that they would benefit from some of the principles of such structure. The disadvantages of a hierarchical structure is that "communication across different departments tends to be less effective than in flat organizations. Rivalry between departments may inflame as each department make decisions that benefit its own interest rather than the organization’s as a whole. Increased bureaucracy often hinders an organization’s speed to change. Increased time may be required to respond to clients." (Meehan,) In my organization the cohesion amongst the departments is a lot to be desired. We may have a customer on the phone and need information but a policy was put into effect that we need to email versus calling to get an answer, which leads to a longer resolution time for the customer. There is a feeling of angst when having to deal with other uncooperative units. This makes for as unproductive environment. In Gore’s structure every one is on the same level, there are no bosses (no subordinates) and their collaborative effort in making the company a success is a uniform goal.

My company is in the process of reconfiguring and adopting some of the characteristics of the horizontal structure. They are rolling out a new program that is suppose to streamline our daily processes and communication with various units. "The most significant strength of the horizontal structure is that it can dramatically increase the company’s flexibility and response to changes in customer’s need because of the enhance coordination. The structure directs everyone’s attention toward the customer, which leads to greater satisfaction as well as improvements in productivity, speed, and efficiency."

If organizations would incorporate some of Gore’s practices within their organizational structure thus creating a hybrid organization it would probably prove to be beneficial. "Sally Gore, ‘I often compare our organizational structure to a democracy to explain the tradeoffs in a structure like ours," she says. "When you look at it from a purely objective standpoint, a democratic government may not be the most timeor cost-effective way to run a country. In the end, however, the quality of life is far better than what you'll find in a dictatorship. We believe the associate satisfaction and spirit of innovation that result from our culture more than compensate for its challenges.’"

　

　

　

　

　
Townsend, D. R. & Harder, J. (2000). W.L. Gore & Associates [Case no. UVA-OB-0700]. Charlottesville: Darden Business Publishing.

Daft, R. (2007) "Fundamentals of Organizational Structure." Organization Theory and Design (9th ed.), pp. 88-125 (Chapter 3)

Meehan, C.L. (No publication date available). Flat Vs. Hierarchial Organizational Structure.  Chron. Retrieved from http://smallbusiness.chron.com/flat-vs-hierarchical-organizational-structure-724.html

Anfuso, D. (1999). Core Values Shape W.L. Gore's Innovative Culture. Workforce, 78, pp. 48-53. Retrieved from http://search.proquest.com.libproxy.usc.edu/docview/219789397