Researching a one company and Solving 3 Questions Essay

Researching a one company and Solving 3 Questions - Essay Example McKnight’s management principles were firstly to delegate responsibility and to encourage staff to exercise their initiative and secondly for management to learn to focus on supporting staff who have participated in failed projects move on to something else rather than punishing them (â€Å"McKnight Principles† 5). To reinforce its culture of intrapreneurship 3M has instituted several policies and philosophies. The three that jump out of 3M’s organizational culture are the 15 percent option, tolerance for failure and rewards for success. The 15 percent option give employees authority to 15 percent of their workweek on individual projects of their choice without the need to either disclose or justify it to a manager (Govindarajan and Lang 3). This policy gives 3M staff freedom to be innovative. Tolerance for failure philosophy guarantees employees their jobs and no punishment for a product that fails in the market. On the contrary, 3M has often repeated stories of famous failures that went on to become highly successful products. This policy has the effect of keeping initiative and creativity alive among 3M’s staff. For innovative products that go on to have a breakthrough in the market, 3M acknowledges team member through salary raises, promotions, and recognition. For example the Golden Step award is given to team members if a newly launched product reaches a revenue goal of $2 million in the US or $4 million worldwide (Govindarajan and Lang 3). Better yet the informal recognition given to successful entrepreneurs through stories that convert them from mortals to legends is considered more powerful by 3M staff. The two major benefits that 3M derives from its organizational culture are staff loyalty and product differentiation as the key to commercial success. Staff loyalty is a manifestation of high staff motivation which often leads to increased job performance. Having a highly committed staff 3M’s management find it easy to