General electric become the strongest company in the United States in the mid 1990s and most valued company in the whole world in market capitalization. Today, general electric is successful in a dozen of businesses and is at the vanguard of change. Some years back, throughout general electric, managers operated in insulated environment separated vertically and horizontally by walls from other workforce and departments. There was discouragement of employee feedback.
In the new knowledge driven economy, general electric has open collaborative work place which welcomes opinion of every one and everyone is made a participant in making the right decisions. THESIS STATEMENT General electric s determined to harness collective power of employees to create free flow of ideas and define relationships that exist between subordinates and the boss. A series of meetings are conducted by general electric management that are designed to encourage feed back of employees, employee empowerment and remove the general electric culture that has traditional barrier that divide employees.
The organization culture of general electric is very important because it has values of great importance to the company and has been distributed to all employees at every level of the company. General electric has consensus on core value to cultivate to its employees. Many hours are spent by the leadership to make decisions on exactly what those values should be for the company to be successful. If the company ignores motivation, organization culture and decision making, it may get negative consequences which can result to bad quality product and service and low productivity.
(Edgar, 1995 pp 46-47). HOW GENERAL ELECTRIC SUCCESSFULLY APPLIES MOTIVATION To get high quality product at low cost employees are given time to discuss about problems related to quality of products and give recommendations of alternative solutions in solving problems through investigating the causes. Corrections are made depending on recommendations. Once corrections are checked they are accepted as a norm if the solution works. General Electric hold meetings within the organization premises and get a room where they meet to think and get solution to problems.
The employees have shared responsibilities which encourage a good participative environment and issues that are raised are greatly accepted. Employees are taught good communication skills, problem analyzing techniques and quality strategies. In the normal working, employees are given a set of duties to perform and are given the right kind of environment. They are inspired to use their creativity and intellect to the benefit of the organization so that their potential energy does not lie dormant. (Penerell, 1965 pp50-54).
Motivation help to reduce errors when employees work and enhance quality and productivity because employees are encouraged to work at their best and to be serious in whatever they are assigned to do and do it with great care. Motivation inspires more effective team work where employees work as a team and each employee is a team player. It also promotes participation and job involvement where every employee work hard all the time and work at their best in the areas where they are assigned duties.
Motivation in General Electric helps employees to have the necessary psychological conditions required for them to work well. The subordinates are also psychologically involved and possess minimum level of intelligence and are in touch with reality. There work environment is conducive for participation by all employees and enough time that permit consultation in case employees encounter problems. When employees submit usable suggestions that benefit the organization, they are rewarded financially. This helps in gathering valuable ideas from employees.
A positive psychological environment encourages employees to give suggestions which make general electric successful. (Bradford, 2005 pp35-37). HOW GENERAL ELECTRIC SUFFERS BY IGNORING MOTIVATION There is no job enrichment to provide workers with variety in their tasks. Workers are not made to be responsible and have control over their jobs. They are also not given additional similar tasks and there is no workers sub-match. Ignoring motivation makes communication poor between the employees and management where employees are not able to air their grievances.
This makes employees less productive because their efforts are not recognized and the overall productivity of the organization is low. Employees are not committed to achieve their goals which lead to decreased output. Managers do not give rewards to meet employee needs and this result to high employee turn over where they leave the general electric to look for employment elsewhere. ( lutive, 1983 pp18-23). HOW GENERAL ELECTRIC SUCCESSIFULLY APPLIES DECISSION MAKING In decision making, good results are obtained by taking appropriate action at the right time.
Unfortunately it may not be clear of when to take the appropriate action. Natural organizational and human limitations are supposed to be contended with by everyone. Value method takes into account the processes key characteristics when fundamental requirements of value method are adhered to by the people who make use of it. In general electric, people and organization want to do good job in order to meet their customer’s needs. If they fail to meet the customer’s needs well, they fail and only few plan to fail.
The best direction to take is not clear all the time. There may be limited time, money; resources and expertise which make the organization make decisions the way they would like. In making decision, every person is contented with his own limitations like the number of items to keep in front of their mind at the same time and the time it takes to develop understanding and comfort in new items and limited experiences that we are exposed to during our life time. When people make decision to do things optimally, they get astonishing results.
The first step should be for general electric to decide to do something better and use good techniques to do it as the second step. Acquiring those skills should be the third step. As people acquire skills, it is for their own benefit and the benefit of general electric as well whether they are applied as a team, organization or individually, it produces great benefits without enduring hard lessons. (Edgar, 1999 pp41-45). The decisions are made on selection, timing, type of activity and other specific applications. Application of method is known as value studies.
Each year general electric saves billion of dollars to improve quality, service, customer satisfaction, market share, increase revenue and profits. Decision making helps to produce end product that produces high customer acceptance. This widens scope and number of available alternatives. Increased satisfactions take advantage of added expertise through value study process. The mechanical condition of circuit breaker whether unit is normal or abnormal is evaluated using diagnostics that are noninvasive, signal processing and decision making techniques.
Procedure for testing involves getting vibration signals placed along external surfaces within the interior of circuit breaker. Quantitative assessment of circuit breaker is done for any condition which is operating. Tests for oil and sulphur hexafluoride circuit breaker are done under abnormal and normal conditions and abnormalities are detected in all cases. (Hassard, 1993 pp7-11). HOW GENERAL ELECTRIC SUFFRS FOR IGNORING DECISION MAKING Financial tools in general electric that evaluate research and development investments have been evolving beyond basic cash flows that have been discounted.
Ignoring decision making may affect development of better tools that value intellectual capital. Risks have not been taken care of and the organization gets exposed to risks that can not be reduced. Rapid growth in technology imposes pressure on management because they are supposed to take into account risks and payoffs that the investment promises in their decision making. There lacks comprehensive methodologies that are easily understandable to solve evaluation problems that result from new technologies being complex.
There lacks information technology values and strategic actions and investment is not valued in terms of real option or economic value. Managers are not able to have an easy to understand framework the help to evaluate and justify investments in general electric. General electric suffers by ignoring decision making through failing to correct deficiencies of traditional methods of valuation and failing to recognize that flexibility of management can bring value which is very significant. General electric is not able to deal with non statistical imprecision encountered when judging and estimating future cash flows.
The primary objective of federal research and development program for non-hydro electric in United States is to help development of technologies that provide customers with secure and stable supply of energy. To be able to quantify the benefits gotten federal renewable electric, pricing is very important where general electric sets the price for its products and services so that it can get valuable returns. Research is done which is an investment and failure of decision making to do the necessary research can result to loss to the organization because there is need to know about the prevailing market conditions.
Potential for investment that is value creating in industrial catalyst depend on commercial and technical opportunity. When both are excellent, there are three cases such as olefin polymerization where opportunities coincided and fluid cracking where there is real commercial opportunities. Lack of decision making makes technical opportunities to be limited and reduction in selective catalytic which is considered to be rich in technical opportunities which has made market opportunity to be problematic. (Mohrman, 1995 pp17-23). HOW GENERAL ELECTRIC SUCCESSFULLY APPLIES ORGANIZATIONAL CULTURE
General electric has a well supported organizational culture. New adapted internet has enabled business to be carried out with emphasis on customer facing activities and being more culture conscious than other business and invest heavily in promoting organization culture. Culture fit is essential as hiring criterion as appropriate experience or technical expert. General electric which is a company renowned for its culture has much of its business digitized, increasing its spending on information technology by twelve per cent in the year 2001.
Streamlining of administrative functions for example travel arrangement and reimbursement of expense on the web enable general electric cut its costs by thirty per cent. Benefit of being digital organization goes beyond standard measures of productivity. General electric has increased innovation by practicing digital organization as a result of adopting leading edge technologies. It foster open communication to customers which increased their innovation.
They are supplied with new ideas by customers for the production of new products and services that satisfy the consumer needs. There is significant benefit to employees who work in digital organizations. General electric has reported higher employee compensation at all level of pay scale. The employees are able to enjoy benefits due to their high performance and stock options. There is low turn over of voluntary employees than other organizations which mean that, employees get direct benefit from general electric for good performance and experience high satisfaction.
For general electric to develop a successful organization culture, it focuses on customers because they are the ones who purchase the final products and services. They buy technology rather than build it so that they can make use of new improved technology that ensures good quality products are produced. They establish partnership that contributes to focusing on customer needs. There is internal partnership between information technology and business management which is very strong and market internally. Effective leadership is critical element in supporting and developing productivity building culture.
By communicating financial and strategic goals in general electric organization, demonstrating support for information, maintaining corporate focus and distributing decision making, business leaders are supposed to lead ways of conducting business in effective manner and use of innovative methods. (Bradford, 2005 pp 30-34). HOW GENERAL ELECTRIC SUFFERS BY IGNORING ORGANIZATION CULTURE Misconduct emerges from isolated moral factual judgements made by officers who function as individual rather than part of the influential or distinctive organization culture.
The regrettable accident explanation may ask whether judgment on amount of force to apply is reasonable when accident occurs. Explanation may fail to consider how the officer failed to be in that situation immediately and how her role and training in bureaucracy affect the way of viewing the broader parameters of decision. The officers’ explanation is flawed because it assumes the officer who is misbehaving is off on frolic and detour which is accountable. Ignoring culture allows the departments to distance themselves from incident by labeling perpetrators to be deviant and allows the managers to declare the rest of the file and rank.
This allows organization absolve itself off the responsibility of facilitating wrong doings. Theoretical and empirical scholarship suggests that organization factors determine misconduct and thus an important and often neglected solution. Unfortunately, like explanations given by individual, department offers misbehavior for its members. Many remedies to control brutality are inadequate because they ignore and undervalue organizational factors. Police brutality can never be controlled unless we take the role of organization culture to avoid police violence.
In trying to identify problems, organization factors interact with individual propensities. (Aldas, 1979 pp16-23). CONCLUSION In conclusion, for general electric to be successful, it should make decisions on how to carry out activities that benefit organization as a whole. Employees need to be motivated to work through rewarding them basing on individual performance so that they can be encouraged to put more efforts in their work. Organization culture consisting of shared beliefs and values should be able to influence strategy formulation and implementation. REFERENCES Penerell C.
(1963): business Administration and management; Gee and Company Limited, pp50-54. Lutive R, Rogers R. (1983): Organization and Management Theory: London, pp18-23. Edgar H. (1999): organization culture and leadership: Jossey-Bass, pp41-47. Hassard J. (1993): Sociology and Organization Theory: Cambridge Organization, pp07-11. Mohrman, S. (1995): Designing team-based organizations: A workbook for Organizational self-design: San, pp17-23. Bradford D. (2005): Reinventing Organization Development: San Francisco, pp 30-37. Aldag R. (1979): Task design and employee motivation: Foresman and Company, pp16-23.
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