The approaches GE took to ensure the shift in structure and decision making would work included putting output and behavioral controls into place for each business unit. The output and behavioral controls were specifically designed to ensure each independently operating business unit shared accountability for corporate results yet also had the accountability to define their own unique business plans and strategies. In using output controls and behavioral controls, GE was able to successfully transition to a decentralized organizational structure.
Often when organizations choose to deploy a decentralized structure, there is an uneven, politically unbalanced and highly competitive approach each business unit takes to getting resources. It is assured that there is never a perfect, utilitarian-based approach to the distribution of resources throughout any decentralized organization. Even GE with its excellent management and leadership programs and initiatives, there will be unequal distribution of resources. To overcome these limitations of a decentralized organizational structure, GE relies on coordination synergy through knowledge sharing and extensive cross-functional teams. These approaches provide for the levels of resource sharing and asset use that are found in a centralized provision of resources, yet still retain the advantage of a decentralized organizational structure. GE continues to be successful with this strategy using a coordinated synergy approach to resource balancing across its decentralized organizational structure.
What is your evaluation of Welch's approach to leading change?
Jack Welch brought a transformational style of management to GE, creating a decentralized organizational structure while also re-aligning planning and control systems, human resources processes and programs and also completely redefining the organizational culture as well. He was a disruptive innovator who also had an innate ability to transform organizational structures and the value chains they relied on at the same time. While creating a highly decentralized organizational structure within GE, he was able to attain a high level of synergy and shared mission and values by using a wide spectrum of techniques including lean manufacturing, Six Sigma and intensive use of process improvement to align the company better to customer expectations and needs.
Jack Welch also showed an exceptionally...
As they are showing the total impact that the activities of business operations are having on its profitability. When you look at the two different forms of analysis side by side, it is clear that they are playing an interconnected role. Where, business analysis and planning will tell you the various external challenges facing an organization. While financial analysis and planning, will tell you the effect of these issues are
Strategic Plan for AOL What is the meaning of progress? In general it means that the group of individuals or organization is being able to keep pace with the changes that keep coming in with time. AOL was a very large and important unit in the Internet services before the broadband access concepts came in. Today, their technology is backdated and they are trying to come in with new technology. At
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GE-Case Study Case Study Analysis on GE: In this analysis we have used the strategy of Porters generic Model. This model assists us in critically analyzing the performance of General Electric's. This model gives an in depth analysis of the internal performance of the organization. The generic Model of Michael Porter consists of focusing on three main areas; Cost leadership, Differentiation, focused differentiation. It analysis competitive advantage an organization possess. Every organization
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