Organizational Structure in W.L. Gore and Assoicates, Gore-Tex, and Columbia

In today’s ever changing and ever-quickening business environment, there is constant debate about what type of organizational structure is “best,” and how choice of structure impacts productivity. Companies in the same industry that receive different results may employ contrasting organizational structures. Founded in 1958, W.L. Gore and Associates trademarked Gore-Tex, a breathable, waterproof fabric (Gore, n.d., para. 1). Columbia Sportswear Company, founded in 1938 is a leading innovator in the global outdoor apparel, footwear, accessories and equipment market (Columbia, n.d., para. 2). In this paper we will analyze the connection between organizational structure and productivity by comparing W.L. Gore & Associates’ Gore-Tex, and Columbia.

First of all, organizational structure determines the hierarchy, the levels of communication, and how job tasks are formally divided, grouped and coordinated within an organization (Langton, Robbins, & Judge, 2013). There are six key elements that managers need to address when they design their organization’s structure: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization (Langton et al., 2013). The way in which an organizational structure is constructed and implemented can affect company productivity.

Nevertheless, there remains a debate over the differences between productivity and performance, and how they are measured. Performance is comprised of seven dimensions, of which one is productivity, as well as effectiveness, efficiency, quality, profitability, quality of work, and innovation (Haynes, 2007). Productivity is defined as “the relationship between outputs and the inputs provided to create those ou...

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...small, voluntary teams that come together over a commitment to a certain project, whereas Columbia designates functional departmentalization. These teams communicate quite differently, but both place high importance on ability to communicate. These differences, therefore, does not necessarily impact the effectiveness of communication and thus productivity. Gore and Columbia have each proved to be quite productive, and extremely innovative, indicating that the organizational structure employed is not indicative of whether or not a company will be successful. The structures employed allow for innovation, which facilitates their competitive advantages in the changing environment. We have found that while the organizational structure impacts productivity, neither structure proves to be “better” in the case of Gore and Columbia, as both remain innovative and productive.