Gore's Organizational Culture Discussion

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We have a manufacturing client with a very similar situation to W.L. Gore and Associates, as discussed in the text, page 276. We have a meeting with our manufacturing client later this week, and I would like you to have a good understanding of what has made W.L.Gore so successful in preparation for our meeting with our manufacturing client. To prepare for this meeting, please review : Management in Action on page 276 of the textbook, W.L. Gore's Culture Promotes Employee Satisfaction, Innovation and Retention.

Answer the following questions using only the text material, critical thinking skills, and APA format. Word count: 600 minimum, excluding the title page.

1. Which of the 12 ways to embed organizational culture has Gore used to create its current culture? Provide examples to support your conclusions.

2. Which of the 3 types of organizational design discussed in the chapter is most similar to Gore's lattice structure. Explain your rationale.

3. Is Gore's structure more organic or mechanistic? Explain.

4. When small companies grow, one of the typical reasons for failure is the inability to establish an effective management structure. Why would this be the case and what should the owners do to avoid the problem?

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Please remember that this assignment is for your researched thought. If you describe an opinion it should be grounded in citation and reference based research. The purpose of the assignment is for you to critically examine issues, using research as your foundation for your ideas. Ideas built from research create credibility with the reader.


I have included all the necessary pages in the screenshots!!

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Organizational Structure

Once and organization’s vision and strategy have been determined, as we stated at the beginning of this chapter, the challenged for top managers is first to create a culture.

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Organizational Culture, Structure, and Design CHAPTER 8 257 8.4 MAJOR QUESTION Organizational Structure How are for-profit, nonprofit, and mutual-benefit organizations structured? THE BIG PICTURE The organizational structure of the three types of organizations-for-profit, nonprofit, and mutual-benefit- may be expressed vertically or horizontally on an organization chart. Once an organization's vision and strategy have been determined, as we stated at the beginning of this chapter, the challenge for top managers is, first, to create a culture that will motivate its members to work together and, second, a structure that will coor- dinate their actions to achieve the organization's strategic goals. Here let us begin to consider the second part—an organization's structure. In Chapter 1, we defined an organization as a group of people who work together to achieve some specific purpose. According to Chester I. Barnard's classic definition, an organization is a system of consciously coordinated activities or forces of two or more people. I By this wording, a crew of two coordinating their activities to operate a com- mercial tuna fishing boat is just as much an organization as tuna companies Bumble Bee and StarKist with their thousands of employees. The Organization: Three Types As we stated in Chapter 1, there are three types of organizations classified according to the three different purposes for which they are formed:82 For-profit organizations. These are formed to make money, or profits, by offering products or services. • Nonprofit organizations. These are formed to offer services to some clients, not to make a profit (examples: hospitals, colleges). Mutual-benefit organizations. These are voluntary collectives whose pur- pose is to advance members' interests (examples: unions, trade associations). Who sells the electricity? About 80% of U.S. drivers drive 40 miles or less a day, and the Ford Focus Electric can drive nearly twice that far, 76 miles, on a single electric charge. The focus is made by Ford Motor Company, a for-profit organization. What kind of organizations might sell the electricity and the charging stations-for-profit, nonprofit, or mutual-benefit? Lucas Jackson Reuters/Alamy cd2 Organizational Culture, Structure, and Design CHAPTER 8 255 8. Rewards, Titles, Promotions, and Bonuses Rewards and status symbols are among the strongest ways to embed organizational culture. Example: At Triage Consulting Group, employees at the same level of their career earn the same pay, but employees are eligible for merit bonuses, again reinforcing the culture of achievement. The awarding of merit bonuses is partly based on co- workers' votes for who contributed most to the company's success, and the employ- ees who receive the most votes are recognized each year at the company's “State of Triage” meeting.75 9. Organizational Goals and Performance Criteria Many organizations establish organizational goals and criteria for recruiting, selecting, developing, promoting, dismissing, and retiring people, all of which reinforce the desired organizational culture. Example: Las Vegas-based Zappos, the online shoe retailer, spends a great deal of time analyzing applicants to see if they will fit into its clan-based culture. “We spend seven to 10 hours (with potential recruits) over four occasions at happy hours, team building events, or other things outside the office," says the company's human resources director. “We can see them, and they can us."76 Until recently, this careful selection pro- cess along with paying full employee benefits and emphasizing having fun at work (the “wow factor”) resulted in a low turnover rate of only 20% in 2009, a remarkable statistic for call centers. That figure changed when Zappos instituted a new form of organization, as we'll describe. Kids Slippers The wow culture. The "wow" factor that encourages Zappos's clan-based culture is partly created by encouraging employees to have fun at work. Is this a place you could stick with? Jared McMillen/Aurora Photos ☺ 10. Measurable and Controllable Activities An organization's leaders can pay attention to, measure, and control a number of ac- tivities, processes, or outcomes that can foster a certain culture. Example: Adam Nash, the CEO of Wealthfront, an online financial management firm, believes that how you keep score on employee progress is important. “If you don't give people metrics [methods of measurement],” he says, “smart people will make up their own,” and “you'll get incessant fighting and arguments.”77 256 PART 4 | Organizing 11. Organizational Structure The hierarchical structure found in most traditional organizations is more likely to reinforce a culture oriented toward control and authority compared with the flatter organization that eliminates management layers in favor of giving employees more power. Example: The hierarchical structure of a railroad provides a much different culture from that of the "spaghetti organization” formerly employed by Danish hearing aid maker Oticon, in which employees worked at mobile desks on wheels and were always subject to reorganization. Zappos has gone further by instituting a radical experiment called holocracy, which is supposed to encourage collaboration by eliminating work- place hierarchy—no titles and no bosses. Unfortunately, employees weren't sure how to get things done anymore, which resulted in such confusion that the company's 2015 turnover rate went from 20% to 30%.7 12. Organizational Systems and Procedures Companies are increasingly using electronic networks to increase collaboration among employees, to increase innovation, quality, and efficiency. Example: Molson Coors CEO Peter Swinburn, in knitting together employees of sev- eral former companies, made sure they had better tools to interact with each other. One technology he introduced was Yammer, a website for short messages similar to Twitter, on which some 2,000 employees now provide updates and collaborate on projects. 79 Don't Forget about Person-Organization Fit Now that we have described the four key types of organizational culture and the mech- anisms managers can use to change culture, it's time to reflect on your person-organi- zation (PO) fit. Recall that PO fit reflects the extent to which your personality and values match the climate and culture in an organization. Your PO fit matters because it links to your work attitudes and performance. So We have two activities for you to complete to measure your level of fit and see what you can do about it. The first is Self-Assessment 8.2, which measures your preference for the four types of culture in the CVF. The second is to answer the discussion ques- tions associated with this assessment. You will be asked to conduct a gap analysis be- tween the culture for a current or past employer and your preferred culture type. You can use this gap to make a plan of action for improving your PO fit. e connect SELF-ASSESSMENT 8.2 Assessing Your Preferred Type of Organizational Culture This survey is designed to assess your preferred type of or- ganizational culture. Please be prepared to answer these questions if your instructor has assigned Self-Assessment 8.2 in Connect. 1. In rank order, what are your preferred culture types? Are you surprised by the results? 2. Compute the gap between your preferred and actual culture types by subtracting your actual culture type score (Self-Assessment 8.1) from your preferred type score (Self-Assessment 8.2). Where are the largest gaps? 3. Make a plan to improve your person-organization fit. Focusing on your two largest culture types, identify what is causing the gaps. You will find it helpful to look at the survey items that measure these types. 4. Now use the 12 embedding mechanisms just discussed and suggest at least two things you can do to improve your level of fit. 254 PART 4 | Organizing Example: Until a decade ago, major drug companies treated countries in the developing world as not worth the trouble of marketing to. But Andrew Witty, who in 2008 at age 43 became the youngest CEO of GlaxoSmithKline, the world's second-largest pharmaceutical company, is making a name for himself by doing more for the poor people of the world than any other big drug company leader. While working in poor countries, Witty found “just unbelievable energy to self- improve, to lift themselves up.” He has promised to keep prices of drugs sold in poor countries to no more than 25% of what is charged in rich ones and to donate one-fifth of all profits made in such countries toward building their health sys- tems. Now for four years running Glaxo has been ranked No. 1 on the Access to Medicine index, which rates pharmaceutical companies on their stances toward the poor.70 5. Leader Reactions to Crises How top managers respond to critical incidents and organizational crises sends a clear cultural message. Example: Cory Booker (now a U.S. senator from New Jersey) was the mayor of fi- nancially struggling Newark in 2010 when a serious snowstorm hit the city. “Through- out the storm," reports The Wall Street Journal, “those in distress hit up Mr. Booker on Twitter, one of the mayor's preferred methods of keeping in touch with residents. After they cried out for plows, ambulances, and diapers, he responded, electronically and sometimes by driving to the location, shovel in hand. ... He ordered his driver to pull over several times to help shovel out or push cars.”71 His on-the-ground efforts were an answer to critics who accused him of being out of touch. 6. Role Modeling, Training, and Coaching Many companies provide structured training to provide an in-depth introduction to their organizational values. Example: Triage Consulting Group, a health care financial consulting firm in California, places a high value on superior performance at achieving measurable goals. New employees are immediately prepared for this culture with a four-day orientation in Triage's culture and methods, followed by 15 training modules scheduled in six-week intervals. After less than a year, the best performers are ready to begin managing their own projects, furthering their career development. Performance evaluations take place four times a year, further reinforcing the drive for results. 72 7. Physical Design There is constant experimenting going on as to the best office layout that will encour- age employee productivity and send a strong message about the culture. Example: After power producer Dynegy emerged from bankruptcy, the new CEO abandoned his private office and moved into a 64-square-foot cubicle—identical to the ones used by the 235 other employees—signaling his aim “to transform a business previously focused on day-to-day survival into an agile operator poised for growth,” according to one report." Another example: Pharmaceutical company GlaxoSmithKline has embraced an open-space philosophy that abandons individual desks in favor of “hoteling," where everyone is assigned to “neighborhoods,” or areas of workers engaged in related tasks (you store your personal belongings in a small locker), on the theory that chance en- counters among employees will spark conversations and collaboration.74 Organizational Culture, Structure, and Design CHAPTER 8 253 8.3 MAJOR QUESTION The Process of Culture Change What can be done to an organization's culture to increase its economic performance? THE BIG PICTURE There are 12 ways a culture becomes established in an organization. A particular culture can become embedded in an organization in many ways, 12 of which are described here. (See Table 8.2.) Changing organizational culture is essentially a teaching process—that is, a process in which members instruct each other about the organization's preferred values, be- liefs, expectations, and behaviors. The process is accomplished by using one or more the following 12 mechanisms.65 TABLE 8.2 A Dozen Ways to Change Organizational Culture 1. Formal statements 2. Slogans & sayings 3. Rites & rituals 4. Stories, legends, & myths 1. Formal Statements The first way to embed preferred culture is through the use of formal statements of organizational philosophy, mission, vision, and values, as well as materials used for recruiting, selecting, and socializing employees. Example: At fashion website Polyvore, CEO Jess Lee wrote down three statements she thought represented the company's distinct culture: (1) “delight the user,” (2) “do a few things well," and (3) "make an impact."66 Walmart founder Sam Walton stated that three basic values represented the core of the retailer's culture: (1) respect for the individual, (2) service to customers, and (3) striving for excellence.67 5. Leader reactions to crises 6. Role modeling, training, & coaching 7. Physical design 8. Rewards, titles, promotions, & bonuses 9. Organizational goals & performance criteria 2. Slogans and Sayings The desirable corporate culture can be expressed in language, slogans, sayings, and acronyms. Example: David Cote, chairman and CEO of global technology company Honey- well, has adopted the principle "Your job as a leader is to be right at the end of the meeting, not at the beginning of the meeting.” That is, a leader's job is to flush out all the facts and opinions so at the end he or she can make a good decision.68 10. Measurable & controllable activities 11. Organizational structure 12. Organizational systems & procedures 3. Rites and Rituals As we mentioned earlier, rites and rituals represent the planned and unplanned activi- ties and ceremonies that are used to celebrate important events or achievements. Example: After a day's meetings with clients, employees at Boston advertising agency Arnold Worldwide like to meet at a beer-vending machine in the office (nick- named "Arnie"), where they sip bottles of home-brewed beer, chitchat, and exchange ideas. Of course, employers need to be cautious about encouraging drinking alcohol at work, for both health and liability reasons.) 4. Stories, Legends, and Myths A story is a narrative about an actual event that happened within the organization and that helps to symbolize its vision and values to employees. to Fortune. One employee described the culture this way: "It's authentic. It's not a façade or marketing strategy."131 • Associates have the freedom to encourage, help, and allow other associates to grow in knowledge, skill, and scope of responsibility. • Associates should demonstrate fairness to each other and everyone with whom they come in contact. · Associates are provided the ability to make one's own commitments and are expected to keep them. . A waterline situation involves consultation with other associates before undertaking actions that could impact the reputation or profitability of the company and otherwise “sink the ship."130 Associates are expected to live by these principles, and the company spends considerable effort trying to hire peo- ple who fit into its culture. It is also important to note that the company does not believe in showering associates with lavish perks as do many of the other companies listed on Fortune's list of best companies. The "headquarters doesn't have foosball tables or napping pods,” according FOR DISCUSSION 1. Using the competing values framework as a point of reference, how would you describe the current orga- nizational culture at Gore? Provide examples to support your conclusions. 2. Which of the 12 ways to embed organizational culture has Gore used to create its current culture? Provide examples to support your conclusions. 3. Which of the three types of organizational design discussed in the chapter is most similar to Gore's lat- tice structure? Explain your rationale. 4. Is Gore's structure more organic or mechanistic? Explain. 5. What is the most important lesson from this case? Discuss. Legal/Ethical Challenge One woman told a reporter that there was an unwrit- ten requirement at her employer that “employees were expected to spend extra money and time on group lunches and twice-weekly drinks. This kind of socializ- ing was necessary in order to get ahead.” She was not told about the requirement during the hiring process, and she now feels a lack of fit. Her problem with the expecta- tion is that she has two children to pick up from school and she tries to save money by taking her lunch to work. In a recent performance appraisal, she was told "I needed to be more of a team player.” Her feedback was partly based on her lack of socializing outside of work. 133 Should Socializing outside Work Hours Be Mandatory? Person-organization fit reflects the extent to which someone's personality and values match, or fit, an orga- nization's culture and climate. Good fit is important for both employees and organizations. This challenge in- volves the cultural considerations of asking employees to socialize outside work hours. If socializing outside work is an expectation of new hires, then it becomes something to consider when applying for jobs. Why would companies ask employees to socialize outside of work hours? There are a number of good rea- sons: (1) fostering comfort and relaxation among employees, (2) helping people de-stress after a hard day, (3) learning more about one's colleagues, and (4) build- ing teamwork and unity.132 All of these benefits should improve interpersonal relationships and potentially boost productivity and customer service. If such requests are voluntary, however, then it is likely that fewer people will show up, thereby reduc- ing the benefits. People who show up are more likely be like-minded and share a common race and gen- der, as well as hobbies, and tastes. Voluntary requests can thus serve as a subtle way of promoting homoge- neity rather than diversity. Moreover, voluntary requests potentially set up a situation in which people develop unequal social net- works. This can have unfair career advantages for those who attend because people discuss work-related issues at such gatherings. It thus makes some sense to make it mandatory to socialize outside of work. Some companies accept this conclusion. Zappos did in the past, and other companies continue the practice today. SOLVING THE CHALLENGE What are your thoughts about making it mandatory to socialize outside of work hours? 1. I think it's a good idea. The benefits exceed the costs and I don't agree that it fails to appreciate diversity. The socializing activities can be varied to fit the val- ues and needs of diverse employees, thereby sup- porting diversity 2. I don't like it. What employees do after work hours is their business and companies should not infringe on them. Socializing outside work hours should be voluntary. 3. I believe that employers have no business interfering with how employees spend time outside of work. This means that I don't want either voluntary or mandatory requests about socializing outside of work hours. If people want to socialize outside work, let them arrange it on their own. 4. Invent other options. Organizational Culture, Structure, and Design CHAPTER 8 277 3. Describe and explain the three levels of organizational culture. 4. What are five ways in which culture is transmitted to employees? 5. Name 12 mechanisms by which an organization's members teach each other preferred values, beliefs, expectations, and behaviors. 6. What are seven common elements of organizations? 7. Describe the four types of traditional organizational designs. 8. Explain what is meant by horizontal organizational designs. 9. What are three designs that open boundaries between organizations? 10. What are three factors to consider in designing an organization's structure? Management in Action W.L. Gore's Culture Promotes Employee Satisfaction, Innovation, and Retention W.L. Gore & Associates was founded in 1958 by Wilbert (Bill) and Genevieve (Vieve) Gore. The com- pany started in the basement of their home. Success transformed the business from the basement to its first manufacturing plant in 1960. Today, Gore has over $3 billion in revenue and 10,000 employees working in offices across 25 countries. It is one of the 200 largest privately held companies in the U.S. 122 The company is best known for its Gore-Tex water and windproof fabrics that are used in a variety of out- door apparel. But the company has expanded its prod- ucts to include vacuum filters, microwave cable assemblies, guitar strings, dental floss, acoustic vents for cell phones, and medical devices.123 The company has been profitable every year since its foundation and has been ranked on Fortune's “100 Best Companies to Work For" list every year since 1998. Its best ranking was as No. 2 in 2005, and it was No. 12 in 2016. Not surprisingly, employees tend to remain at Gore once hired. The annual turnover rate is about 3%.124 that support team goals. Goals are not dictated from the top down. Rather, associates establish their own commitments, and these percolate upward to form corporate forecasts. High-quality relationships "with each other, with customers, with vendors and suppliers, and with our surrounding communities” are essential at Gore. Asso- ciates are encouraged to "build and maintain long-term relationships by communicating directly.” Face-to-face meetings and phone calls are preferred over less rich media, like e-mail and texting. 127 The company established a set of fundamental be- liefs to help embed its desired culture: • Belief in the individual: If you trust individuals and believe in them, they will be motivated to do what's right for the company. · Power of small teams: Our lattice organization harnesses the fast decision-making, diverse perspec- tives, and collaboration of small teams. · All in the same boat: All Gore associates are part own- ers of the company through the associate stock plan. • Long-term view: Our investment decisions are based on long-term payoff, and our fundamental beliefs are not sacrificed for short-term gain.128 Structure, Culture, and Values Leadership Conviction Bill Gore wanted to start a company that was free from bureaucracy and a command and control style of leader- ship. He felt that this was the best way to foster creativity, engagement, and innovation. He was a strong believer in autonomy and creating an environment in which people flourished. To support this philosophy, the company estab- lished a unique organizational structure and cultural values. Gore's organizational structure is referred to as a team- based "lattice" organization. There are no traditional orga- nizational charts, no chains of command, nor predetermined channels of communication.” Employees, who are all called associates, are accountable to the member of their multi-disciplined teams. Teams form in an ad hoc fashion around perceived "opportunities," and leaders emerge.12 "Leadership opportunities at Gore are based on how much of a 'followership’ someone has among co- workers. Gore also uses peer assessments to determine compensation,” according to Fortune. 126 Associates are "responsible for managing their own workload" and for independently making commitments How Does it All Work? Associates are not hired for specific jobs. Rather, they are "hired for general work areas. With the guidance of their sponsors [everyone has a sponsor, whose goal is to help people succeed] and a growing understanding of opportu- nities and team objectives, associates commit to projects that match their skills. ... Sponsors help associates chart a course in the organization that will offer personal fulfill- ment while maximizing their contribution to the enter- prise."129 They do this by actively providing feedback on performance and personal development and by helping associates network with others. Bill Gore also believed in keeping operational facilities small due to his focus on high-quality interpersonal rela- tionships. He observed that it was hard to know everyone once the number of employees at a facility exceeded 150–200 people. The company thus splits up people at a facility once it reaches this size by creating a new location. The final piece of the cultural puzzle involves a set of guiding principles that Bill Gore called freedom, fairness, commitment, and waterline: 276 PART 4 Organizing ܒ POE Management A Practica X + v X A 0 file:///D:/Downloads/Management%20A%20Practical%20Introduction%208th%20-%20PDF%20eBook.pdf ... Organizational Culture, Structure, and Design CHAPTER 8 269 square foot. Although its stock price was down somewhat in 2014, it still was up 12-fold since its 2008 recession-era low. 107 YOUR CALL In designing new products, such as cell phones, the horizontal design team approach, known as concurrent engineering or integrated product development, has been found to speed up design because all the specialists meet at once, instead of separately doing their own thing, then handing off the result to the next group of specialists. Why do you think a horizontal de sign would be better in a retail business such as groceries? 3. Designs That Open Boundaries between Organizations: Hollow, Modular, and Virtual Structures The opposite of a bureaucracy, with its numerous barriers and divisions, a boundaryless organization is a fluid, highly adaptive organization whose members, linked by Information technology, come together to collaborate on common tasks. The collaborators may include not only coworkers but also suppliers, customers, and even competitors. This means that the form of the business is ever-changing, and business relationships are informal.108 Three types of structures in this class of organizational design are hollow, modular, and virtual structures. The Hollow Structure: Operating with a Central Core and Outsourcing Func- tions to Outside Vendors In the hollow structure, often called the network struc- ture, the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster. (See Figure 8.11.) A company with a hollow structure might retain such important core processes as design or marketing and out- source most other processes, such as human resources, warehousing, or distribution, thereby seeming to "hollow out" the organization. 109 Design studio Components assembly FIGURE 8.11 Hollow structure This is an example of a personal computer company that outsources noncore processes to vendors. Sweden Mexico, Asia Core of personal computer company USA Engineering company Distribution company Japan Canada Accounting & finance USA A firm with a hollow structure might operate with extensive, even worldwide op- erations, yet its basic core could remain small, thus keeping payrolls and overhead down. The glue that holds everything together is information technology, along with strategic alliances and contractual arrangements with supplier companies. An example of a hollow structure is EndoStim, the medical device start-up we described earlier. o WS os 5:27 PM 4/7/2019 11 ܒ POE Management A Practica X + v X A 0 file:///D:/Downloads/Management%20A%20Practical%20Introduction%208th%20-%20PDF%20eBook.pdf ... Organizational Culture, Structure, and Design | CHAPTER 8 255 8. Rewards, Titles, Promotions, and Bonuses Rewards and status symbols are among the strongest ways to embed organizational culture. Example: At Triage Consulting Group, employees at the same level of their career earn the same pay, but employees are eligible for merit bonuses, again reinforcing the culture of achievement. The awarding of merit bonuses is partly based on co- workers' votes for who contributed most to the company's success, and the employ- ees who receive the most votes are recognized each year at the company's “State of Triage” meeting.75 9. Organizational Goals and Performance Criteria Many organizations establish organizational goals and criteria for recruiting, selecting, developing, promoting, dismissing, and retiring people, all of which reinforce the desired organizational culture. Example: Las Vegas-based Zappos, the online shoe retailer, spends a great deal of time analyzing applicants to see if they will fit into its clan-based culture. “We spend seven to 10 hours [with potential recruits) over four occasions at happy hours, team building events, or other things outside the office," says the company's human resources director. "We can see them, and they can us."76 Until recently, this careful selection pro- cess along with paying full employee benefits and emphasizing having fun at work (the "wow factor") resulted in a low turnover rate of only 20% in 2009, a remarkable statistic for call centers. That figure changed when Zappos instituted a new form of organization, as we'll describe. Kids Slippers The wow culture. The "wow factor that encourages Zappos's clan-based culture is partly created by encouraging employees to have fun at work. Is this a place you could stick with? Jared McMillen/Aurora Photos ☺ 10. Measurable and Controllable Activities An organization's leaders can pay attention to, measure, and control a number of ac- tivities, processes, or outcomes that can foster a certain culture. Example: Adam Nash, the CEO of Wealthfront, an online financial management firm, believes that how you keep score on employee progress is important. “If you don't give people metrics (methods of measurement]," he says, “smart people will make up their own," and "you'll get incessant fighting and arguments." o WS os 5:29 PM 4/7/2019 11 ܒ POE Management A Practica X + v X A 0 file:///D:/Downloads/Management%20A%20Practical%20Introduction%208th%20-%20PDF%20eBook.pdf ... 272 PART 4 | Organizing Much of this kind of mundane hotel work exemplifies what British behavioral sci- entists Tom Burns and G. M. Stalker call a mechanistic organization, as opposed to an organic organization. 117 (See Table 8.3.) MECHANISTIC ORGANIZATIONS ORGANIC ORGANIZATIONS TABLE 8.3 Mechanistic versus Organic Organizations Centralized hierarchy of authority Decentralized hierarchy of authority Many rules and procedures Few rules and procedures Specialized tasks Shared tasks Formalized communication Informal communication Few teams or task forces Many teams or task forces Narrow span of control, taller structures Wider span of control, flatter structures Mechanistic Organizations: When Rigidity and Uniformity Work Best In a mechanistic organization, authority is centralized, tasks and rules are clearly specified, and employees are closely supervised. Mechanistic organizations, then, are bureaucratic, with rigid rules and top-down communication. This kind of structure is effective in certain as- pects of hotel work because the market demands uniform product quality and cleanliness. In general, mechanistic design works best when an organization is operating in a stable environment. Yet new companies that have gone through a rough-and-tumble start-up period may decide to change their structures so that they are more mechanis- tic, with clear lines of authority. Organic Organizations: When Looseness and Flexibility Work Best In an organic organization, authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks. Tom Peters and Robert Waterman called this kind of organization a "loose" structure. 118 Organic organizations are sometimes termed "adhocracies” because they operate on an ad hoc basis, improvising as they go along. As you might expect, information-technology companies favor the organic arrangement because they constantly have to adjust to techno- logical change. New York-based Dark Arts Consulting, a technology consulting firm, has used the practice of co-working-sharing office space with other businesses to expand into territories in New Jersey and Pennsylvania, enabling it to hire salespeople and engi- neers without having the added expense of an underutilized office.119 Companies that need to respond to fast-changing consumer tastes also favor organic arrangements. No doubt you would be more comfortable in some organizational structures than others. If you value autonomy and the chance to make decisions, you probably prefer a hollow or virtual structure as opposed to one that is more structured. What type of structure do you think would bring out the best in you? E connect SELF-ASSESSMENT 8.3 Assessing Your Organizational Structure Preference This survey is designed to assess your preferred type of organiza- tional structure. Please be prepared to answer these questions if your instructor has assigned Self-Assessment 8.3 in Connect. 1. Do you prefer a more mechanistic or organic structure? What do you think is the cause for this preference? 2. If you were interviewing for a job, what questions might you ask to determine if the company is more mechanistic or organic? o WS os 5:26 PM 4/7/2019 11
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Running head: BUSINESS MANAGEMENT ASSIGNMENT

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1. Which of the 12 ways to embed organizational culture has Gore used to create its
current culture? Provide examples to support your conclusions.

Of the 12 ways of embedding organizational culture, Gore has used training, role
modeling, slogans and sayings, as well as coaching to create its current culture. In this regard,
role modeling has been used by Gore to create its culture by using it as a way or technique for
passing down core skills, knowledge, and values of the organization from role models like the
top management personnel to junior staff (Kinicki & Williams, 2012). An example of the use of
role models by Gore is the provision of guidance by sponsors to enhance performance and
maintain organizational culture. Training is also used to pass knowledge to junior and new
associates. The use of slogans such as “the po...


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