The advantages of Gore’s non-hierarchical system are employees’ flexibility to be involved in projects that they are passionate about. This approach spurs innovation, pays of in financial means, leads to faster product development compared to industry standards, and achieves a quicker response to external changes in the market. Gore’s non-hierarchical system also brings in some disadvantages. Since the system is based on the overall contribution of an employee to his/her team, employees who cannot adapt to the system will not be able to contribute and fall through the system. The amount of new recruits usually has had some previous professional experiences in their lives and because they have been exposed to some sort of a hierarchical environment, it may be uncomfortable for them to work in such an atmosphere. W.L. Gore has offices across the globe and some cultures have low context, it may be harder to exert Gore’s culture in low context cultures and it will therefore be harder to find people. Employees set targets in project, some project targets can be extended from the beginning, causing a larger amount of cost for the company.
2.) How did Gore’s distinctive culture evolve?
Bill Gore realized from his early professional experience in the company that small teams are effective and it is easy to assess relative contributions of employees to overall productivity. Additionally, each employee knew whom to seek out in case they needed help. He was frustrated when managers were unfamiliar with relative contributions of their team members for relative promotions or salary adjustments. In order to be fair to all his employees and promote growth and productivity at the same time, he adopted a non-hierarchical system for his company, where they have the freedom to be involved in any project or initiate a new one.
3.) What are the major aims of Gore’s compensation system?...