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Case Study Ge Motivation

In: Business and Management

Submitted By Gemma1970
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Management Principles and Practices MGT101

Case Study – GE Electric

Gemma Blandford
Word count 1315 (excluding references)

General Electric (GE) was founded in 1878 by Thomas Edison. Since then GE have developed businesses in the areas of Appliances, Aviation, Consumer Electronics, Electrical Distribution, Health Care, Lighting, Oil and Gas, Energy, Finance for both Business and Consumers, Rail, Software Services and Water. They are now one of the most diversified companies in the world.

In 1960 Jack Welch joined General Electrics in the plastics division in Pittsfield, Massachusetts, USA, where he developed his leadership skills and ideas. In 1968 Jack Welch was made the company’s General Manager; for GE in 1981 he was elected Chief Executive Officer. His vision was to become one of the most competitive business enterprises in the world. Shortly after Jack was elected he identified the organisation was bureaucratic - the environment was controlling, upper management made the rules and the juniors followed. The lower level in the hierarchy is controlled by the upper ones, and the planning and decision making is done in one place. The higher levels in the hierarchy have more freedom in doing their work as compared to the lower levels. In this case GE was represented by 9 layers of management from the shop floor to the CEO. Unfortunately in a bureaucratic environment people are afraid to speak out; employees find it difficult communicating with each other, and as a result the work is not productive.

Analysts projected that GE would become unprofitable by the end of 1982 if the company was not dramatically reconstructed. Jack Welch needed to change the culture of the organisation; he wanted to create a culture of openness, confidence, leadership and creative thinking. His goal was to lead and not manage…...

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