However, in the years that have passed since Immelt gained control, the GE organization has struggled to maintain the same quality of culture that existed under the leadership of Welch. Brady (2004) interviewed Immelt about his position on Six Sigma in the organization. In this interview, Immelt admitted that his push toward innovation had made Six Sigma less of a driving force for quality development in the organization. While Immelt contends that he still utilizes Six Sigma as a foundation for operations in the organization, he also notes that Six Sigma and innovation cannot exist simultaneously.
Despite the challenges facing Immelt in his efforts to develop the organization, research demonstrates that this leader has had notable success in this area. To demonstrate the overall impact that Immelt's methods have had on the organization, Brady (2005) reports that, "He [Immelt] worries that GE's famous obsession with bottom-line results -- and tendency to get rid of those who don't meet them -- will make some execs shy away from taking risks that could revolutionize the company" (p. 64). For this reason, Immelt has focused organizational development on programs that motivate individual employees. Immelt has developed a host of programs that break from the quality standards that are required under the Six Sigma management system. Brady reports that overall the focus of the organization is not quality improvements for managing the bottom-line; rather Immelt has shifted the focus of the organization from deals and cost-cutting to new products, services, and markets" (p. 65).
In the context of this process, it is evident that Immelt has made some effort to improve the negative outcomes that were achieved under Welch. After Jack Welch stepped down as CEO in 2001 and Jeffrey Immelt took over, Immelt was quick to see the problems that had been created as a result of the culture that had been established under Welch. Even though Immelt recognized he importance of establishing strong internal controls for the development of the organization -- such as what is accomplished under Six Sigma -- Immelt also realized that...
In short, General Electric Immelt believed that GE had created a culture so focused on the financial outcome of every decision that mangers and employees in the organization are afraid to develop innovative methods that may eventually fail.
Conclusion
Synthesizing all of the data provided in this investigation, the true manner in which organizational concepts and ideas converge to understand the organization are elucidated. Based on the information provided in this investigation, it becomes evident that General Electric faces, and has faced, a number of notable challenges even when efficiency and market dominance were central features of the organization's development and expansion. Further, this research demonstrates that the specific type of leadership provided in the context of the organization will have marked ramifications for the specific outcomes that are achieved by management and employees. Although leadership was not a central focal point for this investigation, the review provided of leadership here again illustrates the manner in which all organizational behavior concepts are integrally tied with one another. Interestingly, this research also demonstrates the "push-pull" factors that can contribute to the development of organizational behavior. While efforts to create a unified, high performing, ethical organization appear to be the goal for most leaders and managers, in many instances, outcomes reflect a compromise of internal and external realities. General Electric is clearly a formidable example of the true challenges that face the organization. Further, the organization is a true example of how concepts of organizational behavior interact dynamically.
References
Brady, D. (2005). The Immelt revolution. Business Week, 3926, 64-73.
Cummings, K. (2005). Chapter one: early life. Jack Welch, 1.
Gunther, M. (2004). Money and morals at GE.…
