3m Case: Business Strategies over Its History

3. Total Rewards Strategy – This structure is very complex, yet comes with a lot of flexibility to allow for growth and internal satisfaction. The pitfalls with this structure come with the implementation, which could be treacherous and difficult to convey to our employees.

The convenience that this division offer customers should give the organization a profitable and popularity boost, allow them to expand globally, and make the company a leader in innovation in its industry.

Although the achievement culture contained a few drawbacks, there were a few perks that allowed the organization to succeed. Many department managers had a goal oriented mentality, this mentality allowed them to become creative in how to meet their goals. When sales goals were met, bonuses and rewards were given to department managers. This type of personal initiative gives employees a reason to work and to want to help the organization. Additionally, when sales goals are met there is usually an increase payroll for the company; this increase in payroll allows workers to work more hours and be more financially stable.

The key components to developing effective Reward Strategy is to ensure that there are clearly defined goals to meet business objectives, that the reward programme meets the needs of both the organisation and its employees, and to ensure that this is then supported by effective HR policies. In order to ensure these criteria are met there are a number of factors which influence how reward strategy is developed which include both internal factors within the organisation itself, as well as external factors outside the organisation.

Several key points are presented in the article for how companies can be successful. The first, is that companies must be innovative and be willing “to change their core products or business models” (Bertolini et al., 2015, p. 90) to keep up with the change in the marketplace. This may require that they rebrand their product, or change their business

To do this, he has to change the metrics by which performance is measured, rewarding people not for the innovativeness of the ideas they find or develop but for the success of those ideas in the marketplace (2005, p. 22). Lars must mitigate the undesirable effects by positively reinforcing desired behavior and explore what types of behavior are currently being rewarded and ensure employees care about doing their job and producing products that are beneficial to the organization. “For an organization to act upon its members, the formal reward system should positively reinforce desired behavior, not constitute an obstacle to be overcome” (Kerr, 1995, p.13).

Generating short-term wins—managers and employees like the sense of achievement. Traditionally, implementing a strategy costs a long time to achieve success. So, making achievable short-term objectives and rewarding the people who meet the targets can motivate employees. BA did not make short-term objectives in this strategy, and no plan about rewards for those employees who would help BA achieve the target.

3M promoted intrapreneurship – This is a very good control. 3M was the leader in intrapreneurship and encouraged its employees to practice entrepreneurship within the established corporation. This is a very big financial and non financial motivation for employees as it allows them to proceed with their plans and contribute towards the growth of the company. It also gives them a chance to take risks without the fear of reprisals. This often fosters new business developments which benefit the employees as well as the company. This control ties up with the "15% option" in which employees have the option of spending up to 15% of their workweek pursuing individual projects of their choice. They don't have to disclose or justify the project to a manager. This control definitely supports the strategy of 3M by giving the employees the freedom and motivation to innovate regularly. 3M Corporation should continue with this

Reward and recognition programs must connect the needs and expectations of the workforce with the company’s overall goals and strategies. A program that reinforces important company values and goals will encourage employees to act in line with such goals and emphasize the importance of achieving these goals. Alternatively, rewards which do not connect with organizational goals may convey a misleading message and encourage employees to act in a manner that does not facilitate the

Q1. How has 3M’s innovation process evolved since the company was founded? Why, if at all, does 3M, known as the “hothouse” of innovation, need to regain historic closeness to the customer?

TI is aware that its customers depend on the company to assist them innovate and get to market first. The company, therefore, drive toward

The company 3M is a diverse company that was incorporated on June 25, 1929 with presence in more than 10 industries alone. “3M products are sold through a number of distribution channels, including directly to users and through wholesalers, retailers, jobbers, distributors and dealers in a range of trades in a number of countries worldwide” ("3M Co," n.d., para. 1) The company head quarters is located in St. Paul Minnesota, however 3M has locations all over the United States. 3M is best known within the consumer industry with brands such as Post-it, Scotch, Scotch-Brite, Filtrete, O-Cel-O, Nexcare, and Command. “3M is one of 30 companies in the Dow Jones Industrial Average and also is a component of the Standard & Poor's 500

It’s not a secret that Apple has plentiful rewards for its employee, however, the aim of distributing the rewards is to get high performance from employees. Then, how does Apple use rewards to get innovation and productivity from employees? I think this question needs to relate to Apple’s corporate philosophy—building a performance culture, which requires significant differentiation based on performance, and it’s clear that in this culture, the top performers and those who are working on mission-critical products are treated significantly differently.

The third example involves innovation. Apple, once a firm engaged in personal computers and music players, now is the largest mobile phone producer in the world. After the introduction of the first model of iphone to the world in 2007, Apple’s innovation has been paving the way for evermore success. The splendid multi-touch screen, strong processor and numerous applications, all are innovations which have met customer needs and been successful. What is more, established producers like Black Berry and Nokia who once were among the largest mobile phone suppliers have all seen a decline in sales due to the popularity of the revolutionary iphone. Inventions help businesses further to maintain their leading position in the market.

If ADI does not innovate then some other company may innovate and market their product thus decreasing ADIs profit. This section motivates the team to be innovative in performing their tasks.