(Tiểu luận) subject organizational behaviorcase 3m

3M’s approach to strong values and norms.... Case analysis: INNOVATION CULTURE OF 3M The business 3M is well-renowned throughout the world for its organizational abilities that support c

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ADVANCED EDUCATIONAL PROGRAMS

-*** -MID-TERM REPORT

SUBJECT: ORGANIZATIONAL BEHAVIOR

CASE: 3M

Members:

Class:

Supervisor:

Hanoi, 2022

I The history of 3M 1

II 3M’s culture of Innovation 2

III Case analysis: INNOVATION CULTURE OF 3M 2

CONTENT 3

I Definition 3

II 3M’s approach to strong values and norms 4

III The behavioral impact of 3M on their employees 4

IV Other companies' ability in copying 3M's values and norms 6

V Related theories 8

CONCLUSION 10

I Summary 10

II Implications and Limitations 10

References 11

I The history of 3M

3M Company, originally known as Minnesota Mining and Manufacturing Company (1902-2002), is a diversified American technology business that produces abrasives, adhesive tape and related goods, and consumer electronics components Henry S Bryan, Hermon W Cable, John Dwan, William A McGonagle, and J Danley Budd created the corporation in

1902, and it is based in St Paul, Minnesota

3M established broad criteria for diversification, avoiding price cuts, increasing sales by 10% per year, maintaining high staff morale, and maintaining quality control, all of which propelled the company's growth and produced its own corporate culture The sales system superseded the standards in certain respects Salesmanship was supposed to be aggressive and customer-focused Instead of engaging with a company's buying agent, sales reps were urged

to go directly to the store and speak with the individuals who utilized the items By doing so, 3M salespeople were able to uncover both how goods could be enhanced and what new products could be required, resulting in some of 3M's early discoveries

II 3M’s culture of Innovation

When it comes to 3M's Innovation, there is no one-time narrative, but rather a process and

a strategy, which no other corporation illustrates better than 3M 2021 (SURYAKANT TRIVEDI) Some of 3M's secrets were revealed by Wynne Lewis, UK R&D Director, and Adam Newland, UK&I Senior Technical Manager: "Research is the translation of money into knowledge; innovation is the transformation of knowledge into money." Because 3M recognizes the value of information, knowledge is usefully capitalized to produce value That

is why 3M received the National Medal of Technology, the US government's highest accolade for invention, for their remarkable and spectacular new ideas

III Case analysis: INNOVATION CULTURE OF 3M

The business 3M is well-renowned throughout the world for its organizational abilities that support creativity and the development of new goods 3M has created culture principles and conventions that significantly highlight the need for people to feel empowered, to experiment, and to take risks in order to come up with innovative product ideas

Consider the case of Scotch tape, which has a long history in the commercial sector It all began when Dick Drew, a 3M scientist, visited a body shop in St Paul, Minnesota, and found that using two materials - strong adhesive tape and butcher paper - as a paint shield to prevent

was mocked by employees who proposed that 3M develop a product to make their job easier Dick returned to his manager with a fresh product idea: a tape with a weaker glue or adhesive that wouldn't tear the paint off Drew had to cover both his allocated work and his new idea because the firm did not foster originality at the time Drew eventually created "masking" tape and refined his adhesive within two years When masking tape became accessible, it became clear that it might be utilized in a variety of other scenarios As a result, Drew was hailed as a business hero and given command of the laboratory and the instruments he needed

to develop new types of tape for these varied purposes

The root of many of 3M's cultural principles and success is the fact that workers work on projects of their own choosing For instance, there is an unwritten rule that researchers should devote 15% of their time to independent project development or different forms of praise or bonuses, such as "Golden Step Program" and "Carlton Hall of Fame" In order to promote collaboration and idea sharing among staff members, 3M also recognized the significance of developing company-wide values by building a structure of cross-functional teams composed

of members from a diversity of sectors that was formed to address the issue of workers in separate roles concentrating only on their respective jobs, which closely interact with customers—the same objective of all teams

It is undoubtedly accurate that the 3M organization has a good impact on their employees through these policies, allowing them to stumble and have their own experiences to create practical products as well as being recognized by the firm and other colleagues Evidently, 3M has reaped the benefits of its efforts to foster an innovative culture and instill in its staff the values of excellence and creativity In this report, how 3M succeeds will be analyzed in detail

CONTENT

I Definition

Organizational values

There are four kinds: espoused, attributed, shared, and aspirational The chronological direction and level of analysis of these fragmentary but related forms varies These forms are used to emphasize the emergence of gaps and overlaps between organizational ideals, demonstrating their dynamic character

It also has a set of core beliefs that it adheres to Business principles, a firm's philosophy, or how the company wants its workers to act are examples of what they could contain Values are all-encompassing; they are not unique to any particular scenario, but rather serve as a guide for how a firm should handle everything it does and everyone with whom it interacts " rganizational values serve as guides to what is considered good and O important in the organization" according to one definition Values may help establish a company's personality and distinguish it from competitors They have the ability to make a statement about a company's position and principles They can provide people with focus and

feeding into daily decisions and work Furthermore, values serve as one of the building blocks of organizational culture, providing a consistent reference point even during times of change Of course, the best values do all of this while also providing a framework for success and reinforcing company-wide ethics

Organizational norms

It is a set of rules for human behavior in the organization, and they regard sharing information as usual, correct, and socially expected workplace behavior (Constant et al.,

1994, p 404) Organizational norms are an unwritten, informal code of conduct that all employees are required to follow For all members of the organization, these can be stated explicitly or impliedly This homogeneity becomes crucial to preserving a particular workplace culture in each firm

Through historical occurrences, significant occasions, and deliberate choices, these conventions or standards have gradually emerged Together, they support what is supported, discouraged, accepted, or rejected in the workplace They paint a complete image of the identity, values, and future direction of the organization Every business can operate more effectively, improve performance, create a successful culture, and achieve its long-term objectives with the aid of a deliberate, clearly defined, and strategically implemented set of norms

Organizational norms are created by the founding members of a company, its leaders, and every subsequent hire, as well as by the behaviors that are accepted and encouraged inside the firm Values, culture, and organizational standards are all intimately related to one another Organizational norms are impacted by times of great stress or growth, by leadership changes, and by the addition of new team members Employees can either help a company succeed overall or hinder it, depending on how well-defined, robust, and eager they are to follow organizational standards

For instance, it might be standard practice for an employee to reply to an email inquiry within one business day or, in the event that they are away, to set up an auto response

II 3M’s approach to strong values and norms

We can see from the instance that 3M has perfected the creation of fantastic values and standards for their company's culture As previously said, this is not something that can be done instantly, but must be built gradually

By emphasizing and promoting the empowerment of the workforce, 3M allows scientists

to experiment as their preferences and take chances with new ideas and products, 3M has attempted to establish strong organizational principles and norms 3M's guiding principles include accountability, diversity, quality, cooperation, passion, integrity, and leadership Top management acknowledges the need of defining core values so that everyone may accept them and change their behavior appropriately

the 1950’s, we’ve encouraged our employees to take the time to innovate outside of their normal jobs through our 15% culture And we encourage them to partake in service projects around the world through 3M Impact, our global pro bono program, and other volunteer opportunities around the world” (2018) This statement places a strong emphasis on employees' originality and innovation The organization 3M has provided their staff independence by highlighting that they should devote 15% of their research time to the product development of their choice As a result, the organization provides employees with opportunities to develop their own ideas with enthusiasm It may appear that the employees profit more, but if the product is well received by clients, it is a win-win situation

Consequently, a company-wide value that promotes collaboration and sharing while placing an emphasis on innovation and recognition is created

III The behavioral impact of 3M on their employees

Innovation boost

Allen Jacobsen, 3M’s CEO, says, “People ask me how you get people to be innovative It’s simple You give them responsibility for their own destinies and encourage them to take the risks.” (O'Reilly, 1989)

This point of view given by the CEO of 3M himself has proven that the corporation always makes room for self-improvement of the employees Specifically, according to the article ‘’Why 3M has an innovative culture”, the corporation stimulates the informal norm

that researchers are ‘’allowed to spend 15 percent of their time to develop projects of their own choosing.’ Through this simple yet powerful norm, workers tend to step out of their comfort zone and explore the outer world with endless possibilities, coming up with ideas like

the “Scotch tape” As a result, 3M set out a goal to contribute at least 25 percent to its growth with modern, ground-breaking products Nevertheless, based on a study conducted by

Harvard Business School, (3M- Case Study- Class work, 1995) Apparently, employees in 3M are allocated with every essential tool, time, and mental support from the corporation to

bring about radical changes, products that stand out and generate positive outcomes The

“15%” practice of 3M emphasizes the internal value that is deeply ingrained in the operation system: individual entrepreneurship Under the leadership of Ex-CEO Herzog, enable promising projects, envisions to be separated into autonomous units In other words, more

leaders are created with responsibilities and resources “Powerful leaders were more likely to

exert effort and make sacrifices than those less power.” (C.N Dewall, 2010), this statement also describes the underlying effect that the brilliant organizational model has implied on employees, enhancing their sense of productivity and innovation across the organization Moreover, Mc Knight as the president of the company also created a “tripod-like stability” between sales, manufacturing, and research This can be referred to as the definition

of “the organic model” in the organizational behavior field A cross-functional team engages

the participation of workers from various fields in an organization to harmonize, aim for a sole purpose, goal altogether Explaining this particular organizational approach, McKnight

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preached: “Mistakes will be made But if a person is essentially right, the mistakes he or she

makes are not as serious in the long run as the mistakes management will make if it is

dictatorial”, this stands for the elemental values that are immersed into the system of 3M:

integrity, passion for change The management theory of Mary Parker Follett- who called

management as “the art of getting things done through people”: “Leadership is not defined

by the exercise of power but by the capacity to increase the sense of power among those

led,” (Caramela, 2022) aligns with the policy of 3M in numerous extents Empowerment,

trust, and innovative motivation are the main cores of ingrained by the company which has

enhanced innovative, ground-breaking strategies being invented by intellectual employees

More specifically, the outstanding development of an unexplored yet lucrative aspect of the

industry: niche markets This has been proven by either the prominent of products including

surgical tape or Scotch tape of Dick Drew discovered from the case

(Owyang, 2010)

Productivity

Apparently, the employees are affected positively by the implementation of these

norms, generating much more income for the operation of the corporation This practice bear

resemblance to Kao’s internal packaged-goods company In which company the CEO has

enacted such special norm that “rejects authoritarianism and fosters individual initiative in a

variety of ways.” In other words, employees are integrated deeply in every progress no

matter their positions Through this, their workers are put in the front lines, explicitly devoted

to the overall corporate goals (Bartlett, 1994) This practice of respecting, encouraging, and

promoting individuals has brought about monumental success for the corporation In other

words, the work efficiency of workers is significantly enhanced since they have a clear goal,

a clear information source, and a clear mind to focus on their activities Notably, famous

stories of innovation accomplishments in 3M tend to come from persistent mindset,

strong-willed yet rigorous actions that times to times defy the managers’ perspective but eventually

proven to be successful

The work efficiency of employees, especially scientists or researchers in 3M is also

elevated by the existence of intangible reward: recognition Within the information given to

our case, we have also witnessed the substantial evaluation, appreciation that the corporation

provided for their “heroes” through the reward system: “Golden Step Program” as monetary

support, and “Carlton Hall of Fame” as mental support approach Apparently, new employees

when joining the workforce with 3M will soon hear of not only stories of successful

innovation by perseverance, determination, but also visually and genuinely witness the

priorities that 3M offers to praise similar spirits Moreover, to guarantee the quality and the

reduction of risk, 3M also introduced association, mutual support for “failed technology”

with the vision of Mc Knight that “well-intentioned failure” should be considered into the

managerial system Consequently, well-known stories like the “hallelujah moment” as CNN

news commented on the invention of the Post-it note have been brought to life The Post-it

Expectancy theory Organizational Behavior 100% (3)

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adhesive that fails” brought to life by Silver and Bob Olivera- two researchers from 3M If not for the policy that allows employees to stumble and fail, 3M would not have been rewarded with this prospective product that later reached astronomical sales of over $100 million a year From then, Post-it became the most historically successful innovative product owned by 3M, from the foundation of “failed” attempt The norms and values that are instilled thoroughly across the operating system of “the front runner in its industry”- 3M corporation has succeeded in diverting their employees into practicing, changing, trying, devoting, and engaging in their work Holistically, all these achievements are worthy trophy for 3M and their principles as Angelo Sorbello from astrogrowth.com commented: “3M is honest with both their employees and their business partners 3M looks for what works and aggressively pursues it.”

IV Other companies' ability in copying 3M's values and norms

In general, 3M has been very successful in establishing norms and values They have a culture that encourages employees to be more creative and dedicated to their jobs

We believe that it is challenging for another company to replicate 3M's values and norms Putting their strategy into words to create these norms and values may not be difficult, but putting it into action is a whole other level

To begin, the working environment must be inspiring enough for employees to generate new ideas Workers may become fatigued and unable to pursue new project ideas if the working environment is bureaucratic They would simply complete their task as if they were performing their duties, rather than exploring their own or the company’s potential What's missing are enthusiasm and effort For small or start-up businesses that cannot recruit many people despite a high workload and inexperience in developing organizations or

administration, they may end up pushing their employees, leaving them with little space for creativity

It can also be seen that 3M sees value in and invests in this innovative culture They establish a system of cross-functional teams comprised of members from all departments It enables people from several disciplines to exchange information, generate new ideas, and coordinate complicated tasks This is frequently in line with the organic model Organic organizations are devoid of formality, specialization, and consistency They have

decentralized decision-making procedures and well-coordinated activities Organic organizations and boundaryless organizations share many similarities Employees may be more innovative and creative since the business is less strictly controlled Organic structures are utilized in dynamic, unstable circumstances where organizations must swiftly adapt to change because the structure allows the company to manage rapid environmental change and

a diversity of variables.In contrast, we have a mechanistic model Mechanistic firms characterized by high formalization, a restricted information network, and centralization, on the other hand, would find it difficult to modify their culture in order to redefine their values and norms (Robins & Judge)

business has the resources to follow an organic model since it requires human resources Without communication and assistance from others, one may claim exclusive responsibility for their idea, causing them to devote more than 15 percent of their time to their own project while neglecting the assigned one This is likely to occur since a person is more inclined to share interest in those that they created rather than those they are commanded to do If their product does not meet the needs of their customers, the company will suffer a loss If they pushed themselves to complete both assignments on their own, the quality may be lower, resulting in less effective results

An example of a mechanistic model is the Department of Motor Vehicles They have repetitive tasks that must be straightforward and consistent: completing a written test, an eye exam, a driving test, paperwork, and earning your driver's license (Libretexts, 2021)

Furthermore, not all businesses pursue innovation in the same way that 3M does It will also be unsuitable for them to mimic 3M's values and norms rigorously controls expenditures and avoids spending on unnecessary expenses Therefore, they would not enable their staff to experiment with new ideas since it would be too expensive

Although it is difficult, this strategy has been adopted by a large corporation, Google The side project time for Google was 20%, which led to the success of Gmail and Google Earth

Still, these tasks are not as simple as they look Employees must first present their project

to their manager and explain how it benefits the firm in some manner, even if just tangentially, before working on it for 20 percent of the company's time It requires on-the-ground labor as well as a bird's-eye view of the organization's internal and external settings, which 3M has honed through time