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W.L. Gore

Management Analysis

Patricia Cantillana

on 22 July 2011

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Transcript of W.L. Gore

Peer Driven Judgment What are the distinctive features of W.L Gore’s organization and management?

To what extent do they represent a consistent management based upon identifiable principles? What are the advantages and disadvantages of W.L.Gore’s approach to organization and management of the company? Advantages Disavantages The lattice structure is a unique management structure, which illustrates a nonhierarchical system based on interconnection among associates, its free from traditional bosses and managers. There is not assigned authority and each associate becomes leader based on their ability to gain the respect of their peers and to attract followers. Working in a unique management structure , in this case “lattice system” Employees do not have bosses, they have sponsors who help them to find their place in the organization. Of course there are a few exceptions and commands that are replaced by personal commitments. They communicate with one another, and work together in small and self managed teams, rather than hierarchy of authority. Consultations are required only for decisions that can potentially cause serious damage to the enterprise. Leaders naturally emerge The associates are expected to adapt their roles to match their skills and aptitudes. Under the lattice system any person is allowed to make a decision as long as it was fair, encouraged others, and made a commitment to the company. The effect of the system is to encourage workers to be creative, take risks, and perform at their highest levels If someone has a new idea for a project, they don’t need to go through levels of approvals, instead they need to obtain peer support and gather people to work with them to make it happen. Talent Management, in the lattice organizational structure, recruiting and retaining personnel is approached unconventionally, the traditional recruitment and selection elements are practically nonexistent Compensation and Rewards, the lattice organizational structure lacks the ability to form compensation structures according to qualitifactions and level of expertise. Compensation and performance bonuses, lose their importance within a lattice structure. Even W.L. Gore admits there is difficulty in establishing compensation parameters when he states: “It’s unrealistic for people to set their own salaries." Evaluation; performance evaluation is an essential component for employee development in traditional organizational structures; therefore, a lattice organization lacks the fundamental steps to establish performance standards. Policy Enforcement, in the lattice organizational structure, each person is accountable only to himself. Policies that shape a traditional workplace are loosely formed and difficult to enforce in a lattice structure, creating a potentially chaotic working environment. To what extent is the W.L. Gore approach to organization and management transferrable to other companies and if it is, to what types of companies? W.L. Gore & Associates: Who’s In Charge Here? Fairness Commitment Waterline Freedom No Hierarchy or boss Judgement Work in Small Teams
Large Responsibility Gore's Philosophy Too Much to handle! Businesses or possible company types that could transfer to Gore's Management approach are? W. L. Gore & Associates I think this is about commitment & drive! Only a few companies can truly transfer their management style to Gore’s culture and Philosophy Eventhough W. L. Gore has earned a spot on FORTUNE magazine's list of the "100 Best Companies to Work For."

! I think this is all about passion and drive! Big decision and commitment ... ... few companies can cope I think this is about commitment & drive! Gore's Fundamental Guiding Principles Engineering Firms
Medical Field companies
Designers or Production Teams
Technology and R&D Why This Style of Management Others cannot cope with such high demand and competitiveness A BRIEF HISTORY
Wilbert L. Gore left DuPont in 1958 after 17 years as a research scientist.
At DuPont he had been working on a new synthetic material called Teflon.
He felt that DuPont’s business model geared towards large industrial markets for basic chemical products was leaving out other areas for the application and sale of Teflon.
Working out of his own home in Newark Delaware with his wife Vieve and son Bob they developed their first product, a Teflon-insulated cable which was used for the Apollo space program among other applications.
Their biggest breakthrough was the discovery that Teflon could be stretched and laced with microscopic holes.
The resulting fabric could shed water and allow breathability in garments or outdoor apparel.
Because it was chemically inert and resistant to infection it had other added uses such as in medical applications or in filtration systems.
Gore-Tex was the name given to their newly patented material.
By 1965, just seven years after the business started, Gore was employing about 200 people and repeated this team driven manufacturing facility model many times over making them leaders in diverse markets to this day. WHAT ARE THE DISTINCTIVE FEATURES OF W.L. GORE’S ORGANIZATION AND MANAGEMENT?

Distinctive Features:

The absence of job titles and the lack of normal symbols of hierarchy.

Instead of the pyramid managerial system he used the Lattice System.

It also emphasized communication and cooperation rather than hierarchy and authority.

Persons were allowed to make decisions as long as they were fair.

Consultation was only necessary only for decisions that could potentially cause serious harm to the enterprise.

There were no titles or bosses, all were equal.

Teams were the major contributors, new employees were guided by sponsors in the company. This style of management is rooted in the human relations school of management which assumes that individuals are self motivated and capable of solving joint tasks harmoniously.

Gore does include some elements of hierarchy, they have a CEO and a board of directors as required of any corporation.

The company is organized into four divisions, ( fabrics, medical, industrial and electronic products ).

They have specialized, company wide functions such as human resources and information technology.

Basic organizational units are small, self managing teams.
Relationships within teams are based upon the concept of lattice rather than conventional hierarchy.

The idea of lattice is that every organizational member is connected to every other organizational member within the particular facility.

Natural leadership is valued over formal leadership, teams appoint team leaders and can also replace them, the leaders are accountable to the teams. TO WHAT EXTENT DO THEY REPRESENT A CONSISTENT MANAGEMENT BASED UPON IDENTIFIABLE PRINCIPLES?

The distinctive organization and management features at Gore represent a consistent management to the full extent based upon the following identifiable principles:

Gore is using a management style combination based on the bottom up approach, management by wandering around approach, divisional structure by product or service, lattice structure.

Bottom up approach Gore is not a company of managers but more a company of teams, this leadership by employee teams from the bottom up seems to be working for them through their lattice system. The company has generated $2.5 billion yearly without a hierarchal style of leadership for over 50 years.

Management by wandering around This style of management at Gore is apparent at all levels, teams and employees are in constant interaction with other teams and company projects.

At any time employees are free to begin or change to different projects creating an environment of creativity which leads to new ideas and products. Divisional structure by product or service The Company is organized into four divisions, fabrics, medical, and industrial and electronic, each with a recognized leader.

Within these divisions there are specific business units, each based upon a group of products. This type of structure is widely used when an organization’s products differ substantially. It requires a skilled work force and reduced top management such as Gore’s structure.

Lattice structure This individual accountability structure approach is based on interconnection among associates and is free from traditional supervision, all become leaders based on ability to gain respect of their peers and to attract followers.

All are responsible for their own workload and meeting commitments. PATRICIA CANTILLANA
RAE TORRES http://www.xtranormal.com/watch/12303748/peepz-movie
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