Strategic Analysis of GE What essay

Download this essay in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from essay:

This shift in organizational structure also required the entire corporation to shift from centralized to decentralized decision making. 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 high level of emotional intelligence (EI) as well, in that he orchestrated entire divisions to collaborate and communicate more effectively even in a decentralized organizational structure. His approach to created a coordination synergy or shared purpose also indicates strong transformational leadership and EI-based skills, which are both essential for a leader to excel in such a large, diverse corporation.

Jack Welch also challenged the status quo of the company often, forcing the previous management teams to question their assumptions regarding strategy implementation, organizational structure and how planning and control systems could be used to better manage risk and capitalize on emerging opportunities.

Throughout the many training programs and initiatives he also sought the high performers who would be completely and passionately committed to his vision of what GE could become. Jack Welch was so thorough in his changes to the management and organizational structures of GE that the very nature of what management excellence was changed. No longer confined to the traditional planning, organizing, leading and controlling role, Jack Welch defined leadership as the ability to completely re-align a business to the customer, measure results, aggressively fight to be number one or two in a market, while staying profitable. As these are very difficult changes to bring within an organization at the same time, Jack Welch realized he had to have managers, leaders and employees who would be so completely committed to the program they would not let it fail.

Equipping these managers and leaders to attain their individual, decentralized business unit objectives while also contributing to the corporate-wide strategies of GE, Jack Welch instituted 360-degree feedback and the use of peer and superior ranking of performance as well. What this did was bring a new level of accountability to each manager while aloso underscoring how critical it was to see the totality of their roles in a highly decentralized organization. No longer could a manager or senior executive rely just on his division for feedback and often control the perception of performance and management skill. With the 360-degree feedback, output control and behavior control aspects of decentralized decision-making, every manager and leader in every division was accountable for their performance and their…[continue]

Cite This Essay:

"Strategic Analysis Of GE What" (2011, November 19) Retrieved December 7, 2016, from

"Strategic Analysis Of GE What" 19 November 2011. Web.7 December. 2016. <>

"Strategic Analysis Of GE What", 19 November 2011, Accessed.7 December. 2016,

Other Documents Pertaining To This Topic

  • GE Case Study Case Study Analysis on GE

    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

  • Financial Strategic Analysis How

    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

    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

  • Develop and Implement Strategic Plans

    Strategic Plan The author of this report is asked to develop a strategic plan relative to the Telstra case study. Telstra used to be a shining light in their corner of industry and operational excellence but are now beginning to falter. The author of this report is asked to speak to several different things relative to a new strategic plan, including an executive summary, goals and objectives, vision/mission, environmental analysis, a

  • Strategic Marketing Profit Impact Marketing

    In short, it might be difficult for a small firm to incorporate all of this various evidence from such a large, industry-wide perspective, and to take into consideration the various global implications of even a niche market upon the firm's future strategies. Sometimes, focusing on small improvements might be the more feasible strategy in the short run. PIMS strengths and weakness is its far-reaching, ambitious, and all encompassing perspective. However,

  • Strategic Planning in Education Every

    General Electric (Collis, Montgomery, 2008) pioneered the development of this framework, working in conjunction with the Boston Consulting Group to tailor its specific market sizing and profitability measures to the conglomerate of businesses that comprised GE at the time. One of the key assumptions of the BCG Growth/Share Matrix is that there must be continual monitoring of the market, specifically competitors and relative market share growth over time. Only

  • General Electric Analysis of Strategy Implementations and

    General Electric: Analysis of Strategy Implementations and Potential Issues There are many parts of GE's strategic plan that are interlocked, and thus face some of the same implementation issues. For example, GE's strategy of diversification is essentially interlocked with its objectives of expansion. Through diversification, GE can continue a growth strategy that includes both operational and geographic expansion. As such, the strategic plan to diversify and expand is interlocking dependencies. However,

Read Full Essay
Copyright 2016 . All Rights Reserved