Course Acc100 Chapter 7-8 Critical Thinking Questions ✓ Solved

Course Acc100chapter 7-8 Critical Thinking Questions

Read the following case study and answer the questions that follow.

Gore’s Flat Structure Works Well Imagine an organization with more than 10,000 employees working in 30 countries around the world—with no hierarchy structure. W. L. Gore & Associates, headquartered in Newark, Delaware, is a model of unusual business practices. Wilbert Gore, who left Dupont to explore new uses for Teflon, started the company in 1958.

Best known for its breathable, weatherproof Gore-Tex fabric, Glide dental floss, and Elixir guitar strings, the company has no bosses, no titles, no departments, and no formal job descriptions. There is a managerial hierarchy at Gore, and top management treats employees, called associates, as peers. In 2005, the company named 22-year associate Terri Kelly as its new chief executive officer.

Unlike large public corporations, Gore’s announcement was made without much fanfare. Today, more than 12 years later, Kelly continues as chief executive but is the first to admit that it’s not about the CEO at Gore—it’s about the people who work there and their relationships with one another. The company focuses on its products and company values rather than on individuals. Committees, comprised of employees, make major decisions such as hiring, firing, and compensation. They even set top executives’ compensation.

Employees work on teams, which are switched around every few years. In fact, all employees are expected to make minor decisions instead of relying on the “boss" to make them. “We’re committed to how we get things done," Kelly says. “That puts a tremendous burden on leaders because it’s easier to say ‘Just do it’ than to explain the rationale. But in the long run, you’ll get much better results because people are making a commitment." Because no formal lines of authority exist, employees can speak to anyone in the company at any time.

This arrangement also forces employees to spend considerable time developing relationships. As one employee described it, instead of trying to please just one “boss," you have to please everyone. Several years ago the company underwent a “strategy refresh," conducting surveys and discussions with employees about how they fit into the organization’s culture. Not surprisingly, there was a cultural divide based on multiple generations of workers and length of service stature, which Kelly and her associates have worked hard to overcome.

She realizes that not everyone will become a “lifer" at Gore, but recognizes the importance of younger employees who have helped the company become more tech-savvy in communications and stay well-connected in a fast-moving business world. The informal organizational structure continues to work well. With revenues of $3 billion, the company produces thousands of advanced technology products for the electronics, industrial, fabrics, and medical markets. Its corporate structure fosters innovation and has been a significant contributor to associate satisfaction.

Employee turnover is a low 3 percent a year, and the company can choose new associates from the thousands of job applications it receives annually. In 2017, Gore was named one of the 12 legends on Fortune’s “100 Best Companies to Work For." These companies have made Fortune’s list for all 20 years the magazine has published its annual “Best" rankings.

Critical Thinking Questions

• Given the lack of formal structure, how important do you think Gore’s informal structure becomes?
• Is L. Gore a mechanistic or an organic organization? Support your answer with examples from the case.
• How do you think Gore’s flat organizational structure affects innovation at the company?

Paper For Above Instructions

W. L. Gore & Associates presents a compelling case study in organizational structure, particularly regarding its informal flat structure. In analyzing the importance of this structure, it is crucial to recognize that without formal hierarchies, the informal structures naturally take precedence in guiding relationships, decision-making, and overall corporate culture. This case demonstrates that the absence of a defined hierarchy necessitates strong informal networks for collaboration and communication among employees.

The informal structure at Gore fosters a community-oriented atmosphere where employees can engage freely with one another and share ideas openly. This peer-to-peer interaction is essential because it encourages a collaborative environment that is more agile in response to challenges and opportunities. Employees feel liberated to voice their opinions and insights, which cultivates a climate of mutual respect and shared accountability. With the absence of rigid supervisory oversight, associates are empowered to take initiative, thus fueling innovation and creativity (Gore & Associates, 2018).

In examining whether Gore is a mechanistic or organic organization, the evidence presented supports its classification as an organic organization. Mechanistic organizations typically operate with strict hierarchies, formal rules, specialized roles, and centralized decision-making. In contrast, Gore’s structure embodies traits of an organic organization characterized by decentralized decision-making, flexible roles, and a focus on informal networks. Associates collaborate in teams and are encouraged to transition between roles and departments, promoting adaptability and responsiveness. For instance, the case states that employees are expected to make minor decisions independently rather than relying on a traditional manager, which is indicative of an organic environment (Burns & Stalker, 1961).

The flat organizational structure at Gore profoundly influences its capacity for innovation. With no formal titles or roles, the company fosters a landscape where novel ideas can emerge from any level of the organization. Innovation stems not only from leadership but also from every employee, as they feel empowered to think outside conventional boundaries. Such an environment promotes experimentation—associates can test and iterate ideas without the fear of bureaucratic impediments. For example, if an employee proposes a new product based on market research or identifies a process enhancement, they can promptly champion that idea. The case asserts that Gore’s informal structure supports technological advancements and keeps the company competitive through its focus on relationships among associates (Bennis, 2007).

Moreover, the low turnover rate, coupled with the company's considerable revenue, suggests that the innovation stemmed from Gore’s culture attracts high-quality talent seeking a stimulating workplace. The ability of employees to express their creativity freely translates into an organizational climate that not only enhances product offerings but also aligns with the company’s core values of collaboration and innovation (Gore & Associates, 2018).

In summary, Gore’s informal structure is crucial to the organization’s success. It provides a fertile ground for relationships to flourish among associates, facilitating communication and cooperative decision-making. The organic structure of the organization encourages innovation by empowering employees to take risks and generate ideas without fear of hierarchical repercussions. By continuously fostering an environment of collaboration, Gore enhances both employee satisfaction and market competitiveness.

References

• Bennis, W. (2007). On Becoming a Leader. Basic Books.
• Burns, T., & Stalker, G. M. (1961). The Management of Innovation. Tavistock Publications.
• Gore & Associates. (2018). Corporate Overview. Retrieved from [https://www.gore.com/](https://www.gore.com/)
• Hauser, J. R., & Clausing, D. (1988). The House of Quality. Harvard Business Review.
• Katz, D., & Kahn, R. L. (1978). The Social Psychology of Organizations. Wiley.
• Schein, E. H. (2010). Organizational Culture and Leadership. Jossey-Bass.
• Schneider, B., & Bowen, D. E. (1995). Winning the Service Game. Harvard Business Review Press.
• Smith, D. H. (2006). Organizations: A New Perspective. Cambridge University Press.
• Weber, M. (1947). The Theory of Social and Economic Organization. Free Press.
• Zohar, D., & Marshall, I. (2004). Spiritual Intelligence: The Ultimate Intelligence. Bloomsbury Publishing.