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Motivation theory for employees in practice
Employee motivation
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IV. Trade-Offs
There were several trade-offs for GE to implement the shift in strategic focuses. To achieve organic growth, GE needed to increase output and sales based on customer needs, which was unlikely for GE to achieve in a short time. GE’s profit inflow would slow down in early years as a trade-off for sustainable profit in the future. Previously GE had many projects induced by merger and acquisition activities. They needed to decrease projects and more focus on long-term investment in order to achieve organic growth.
GE was also required to operate more efficiently to cover the high cost of long term investment. Not only built research centers in several locations around the world, GE also increased their research & development budget by 14%. GE started to do their R&D processes by themselves, instead of merger and acquisition. As it took longer time to develop products, GE’s profit could not be gained in a short term.
In order to become more technology and marketing driven, one of Immelt’s goal was to encourage employees to be more risk taking. Grant (1996) refers routine as interface pattern between individuals to build specific knowledge and transfer it to the organization. GE changed its previous routines and slowed down the job rotation. GE recruited external marketing leaders that demanded more employment budget. Multi-disciplinary divisions were created as GE aimed to be more customer-oriented, resulting in increase of training budget.
Becoming more global was also one of Immelt’s strategic focuses. To achieve that, GE gave priority to long-term investment that required new resources. Lastly, as GE wanted to become more socially and environmentally responsible, they needed more capital and resources. As GE could be...
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...isky for GE to lose their investments. In Welch’s period, it was less risky to lose investment as he really concerned about shareholders. Later, Jack admitted that shareholder value idea is insane and GE should more concerned about management and employees back then. He revealed that doing business in 1990s was different with current business conditions.
Works Cited
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Rogers, E. M. (2003) ‘Diffusion of innovations’ New York: Free Press
Weick, K. and Quinn, R. (1999) ‘Organizational Change and Development’, Annual Review of Psychology, vol. 50 (1), pp. 361—386
Christopher, A.B. Brian, J.H. and Nicole, S.B. (2008) ‘GE’s Imagination Breakthroughs: The Evo Project’ Harvard Business School
GE discovered a humongous gap within the management structure and established a plan to fill the break. The three levels of management implemented with GE is to ensure proper the training and information flow between corp...
During his absence, with John Sculley in power, the focus shifted to maximization of profit, and product design suffered. Steve Jobs theorized that is was one of the reasons companies decline. “My passion has been to build an enduring company where people… make great products… the products, not the profits, were the motivation. It’s a subtle difference, but it ends up meaning everything”.
The Myths of Innovation by Scott Berkun completely changed the way I view creativity. I noticed that we all have creativity inside of us; it is by means of expressing our deepest desires and ideas that we display our creativity to others. Burkun destroys myth after myth about innovation, which had me ready to start inventing my first million dollar idea! Berkun outlines ways to tap into innovation and pulls from history to guide us into the future. His simple and common prose gave me courage to tackle the tough problems. I now feel as though I have a firm grasp on what it means to be an effective creator.
Spector, B. (2013). Implementing organizational change: theory into practice. (3rd ed.). Upper Saddle River, NJ
Without the overhaul of its management, which had fixed objective also made their objectives unattainable. The corporation was in a state of out of control before the long-range strategic objectives were set in place. GM’s nominal long-range strategic objective “to use its vast financial resources to spend its competitors right into the ground” fell short on critical characteristics of practicability, flexibility, cost effectiveness, and accountability.
Cummings, T., & Worley, C. (2009). Organizational development & change (9th ed.). Mason, OH: South-Western Cengage Learning.
Palmer, I., Dunford, R., & Akin, G (2009). Managing organizational change: A multiple perspectives approach (2nd ed.). New York, NY: McGraw/Hill. ISBN: 978-0-07-340499-8
In conclusion, GE has high brand recognition, market share, access to assets and competencies and customer loyalty, making it highly competitive within the industry. We can analyze the rivalry as following:
Van de Ven, A.H. and Poole, M.S. (1995) ‘Explaining development and change in organizations’ Academy of Management Review, 20/3, 510-40
Jack Welch believed that all leaders need to have a reality of the organization 's mission. He believed that leaders don 't need to assume and stay ideal but that need to face the reality of the situation, and also work towards it. For instead when Jack Welch found the problems (losing of market value and a lot of bureaucracy) that the GE company was in, he did not just assume that things will turn around in a good way with time but rather, he developed some strategies to face the reality, to make things better. He first looked at the organization 's problem with fresh eye, he tried not to fall into the "false scenarios ' trap and finally he had several options in case
Chapter 3: Cultivate managers who share your vision was the most important chapter to me. It talks about putting the right managers in the right positions. Welch says, “What we are looking for…are leaders… who can energize, excite, and control rather than enervate, depress, and control” (p. 35). Managers in a company should bursting with energy and are able to develop and implement a vision and not just talk about those visions. They must also know how to spread enthusiasm throughout the entire company. One of the keys to being a great business leader is getting employees excited about their work. One of the ways to get employees excited about their work is to allow employees more freedom and responsibility then they have now. In order to make this happen, middle managers have to be team members and coaches. They need to facilitate more than control. Managers should be energizers and not enervators. Welch suggests that the only way to last at GE is to get on board, to become a team player, and to adapt oneself to the company’s values and culture when describing the different types of managers that will or will not succeed. The first type of manager delivers on commitments and shares the company’s values. The second type does not meet commitments and does not share the company’s values. The third type misses commitments but does share the company’s values. Welch himself cares more that a manager sticks to the company’s values than meets the numbers. The fourth type delivers on the commitments but does not subscribe to the company’s values. Welch broke these managers into three categories, type A, type B, and type C managers. Type A managers were defined as team players that subscribe to the company’s values. People trust them; they make impacts on decisions, and are leaders who seek to develop high value in other...
There was too much competition in the Telecommunication industry. Local, long-distance and international markets are all competing for the same business. The company suffered a great deal at the hands of the cable companies, who stepped in to provide complete solutions incorporating computers, television, and plain old telephone services. Stockholders are experiencing diminishing returns and have doubts if GC will be able to recover. Their customers are demanding more technical sophistication from their sales people. GC plans to cut cost and outsource their technical call centers to india and ireland. Outsourcing will save the company money and make them more competitive because of their international status.This in turnwill make them meet their goal of globalization . but have a gap in communication with the union.which makes the situation complex.
COGHLAN, D (1994) ‘Managing organizational change through groups and teams,’ Leadership and Organization Development Journal 15(2): 18-23
Both companies’ changing strategic postures and organizational capabilities led to the major restructuring each company was forced to undertake as its competitive position was eroded. However, it is extremely difficult to overcome deeply set administrative heritage. Although Matsushita and Philips followed different strategies - classic "global" and "multinational" models respectively, both of them proved to have limitations.
Life as we know it today is primarily the result of the innovation of modern marvels from the most pivotal company of the 19th century. General Electric,GE, happens to be one of the most innovated companies of all times, with groundbreaking advances in science and technology. GE scientists and the world’s brightest, are focused on finding solutions to the world’s toughest problems in energy, the medical field, transportation, finance, and in everyday home life. GE has over 304,000 employees worldwide and has founded 67,588 patents. That is even more patents than the US government. GE’s number one commitment centers itself on Eco imagination by reducing its environmental foot print, and therefore striving towards economic growth.