The Morning Star's Lattice Structure Case Study

The Morning Star Company, a highly successful $800 million California tomato-processing company, was founded on a philosophy of self-management. There are no bosses, no titles, and no structural hierarchy. The core of the company's management philosophy is freedom, which is seen as important to effective coordination. The company believes that freedom allows employees to be drawn to what they're told, increasing both enthusiasm and performance. Extensive applicant screening for fit with company's philosophy and new hire training on self-management helps employees adapt to the autonomy and responsibility of working without a formal boss. The company's lattice structure requires a high degree of self-management. Each year every employee writes a personal mission statement that identifies how he or she will contribute to Morning Star's overall objective of "producing tomato products and services which consistently achieve the quality and service expectations for our customers." Every employee also negotiates a Colleague Letter of Understanding with the associates most affected by their work. The letter creates an operating plan for each employee, spelling out the relevant performance metrics for as many as thirty activities. Employees are also personally responsible for acquiring the trainings, resources, and cooperation necessary to fulfill their role. As in any organization, disputes arise between employees that must be settled. If an employee believes that someone has not lived up to their CLOU commitments, the two meet to discuss the issue. If they cannot resolve the matter, they choose a trusted internal mediator to hear their views. If the losing party objects to the proposed remedy, a panel of six colleagues assembles and either endorses the mediator's recommendation or proposes an alternative solution. If that is not accepted, the president brings both employees together and makes a binding decision. Reflecting employees' commitment to self-management, employee disputes rarely make it to the president.

The key theme of the case about The Morning Star Company is self-management.

Compare/contrast Morning Star's self-management approach with traditional hierarchical models. Specifically, think in terms of how does each impact employee performance, freedom, and coordination? A good source for additional information: https://www.morningstarco.com/