Rothaermal Exercise 3
Ryan Cherry
BUSI 690 – Policy and Strategy in Global Competition
February 1, 2015
Chapter 11
Discussion Question 11.1: Why is it important for an organization to have alignment between its strategy and organizational structure?
The relationship between an organization’s strategy and structure are extremely important because it “directly impacts a firm’s performance” (Rothaermel, 2013, p. 309). Also, as an organization grows, it should reevaluate the current strategy and structure to ensure that it remains the optimal choice for the organization (Rothaermel, 2013). The four types of organizational structures, listed in order of least to most complex according to Rothaermel (2013), are: (1) simple, (2)…show more content… Cross-functional teams allow for individuals from differing functional areas within an organization to temporarily come together and work on a particular project (Rothaermel, 2013). These teams would allow for the differing products, though developed for a particular function, to be developed for use in more than one of the organization’s products (Rothaermel, 2013). As an example, the cables developed for aeronautics can likely be used in other electronic or automotive applications if developed by members from the appropriate cross-functional teams.
Discussion Question 11.3(b): What would be your expectations of the type of norms found at W. L. Gore?
Organizational norms “define appropriate employee attitudes and behaviors” (Rothaermel, 2013, p. 318). The norms which exist at Gore likely arise from founder imprinting, which means that Bill Gore, the founder of W. L. Gore & Associates, has helped to establish and define the company’s culture (Rothaermel, 2013). The organization’s four core values, stated succinctly, are: (1) fairness, (2) freedom, (3) individual commitment, and (4) consultation and collaboration (Rothaermel, 2013). These values, coupled with the open nature of the organization’s structure, result in organizational norms which encourage the free exchange of ideas and collaboration up and down the organizational ladder (Rothaermel, 2013).
