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Strategic Management Process at General Electric
What is organisational structure and why does it matter
What is organisational structure and why does it matter
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Recommended: Strategic Management Process at General Electric
For a company to be successful it is important that it has very good organization. Organization can be defined in many different ways. Bateman and Snell define organizing as assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals. Organizing activities include attracting people to the organization, specifying job responsibilities, grouping job into work units, marshaling and allocating resources, and creating conditions so that people and things work together to achieve maximum success (Bateman & Snell, 2011). When a company is able to successfully organize each portion of their business, they will then be able to maintain a strong foundation. A company that has managed to be successful through its well use of organization is that of General Electric Company. They have what it is called a ‘flat’ structure in which everyone becomes equal (Clawson, 2012). General Electric used to have 29 levels, but today it has only a handful of layers (Bateman & Snell, 2011).
The General Electric Company (GE) is organized with its chief executive officer, shareowner, and board of directors on the top of the pyramid, followed by their executive leaders and corporate staff. GE’s Board of Directors ensures the company serves the interests of shareowners and other key stakeholders with the highest standards of integrity and compliance. Serving equally as tough critics and wise counselors, they provide in-depth oversight of the major strategic issues of the company (General Electric Company, 2012). The authority officially vested in the board of directors is assigned to a chief executive officer (CEO), who occupies the top of the organizational pyramid (Bateman & Snell, 2011). There chai...
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...ic Company is a very good example of how a company can change their organizational strategies to better their company. By switched from a tall to a flat organization they are now able to work together to help the company become more successful.
Works Cited
Bateman, T.S., & Snell, S.A. (2011).Management: Leading and collaborating in a competitive world (9thed). New York, NY: McGraw-Hill Irwin.
Clawson, D.M. (March 13, 2012). Management Theory and Practice- Week three: Organizing as a Management Function.
General Electric Company. (February 2011). GE Company Organizational Chart. Retrieved from http://www.ge.com/pdf/company/ge_organization_chart.pdf
General Electric Company. (2012). Functions. Retrieved from http://www.ge.com/careers/functions.html
General Electric Company. (2012). Leadership. Retrieved from http://www.ge.com/company/leadership/index.html
An organization is a social unit of people that is designed and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivisions and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems; they can affect and are affected by their environment (What is an organization? definition and meaning, 2013). Working in an organization individual’s deal with numerous issues. Drugs and alcohol abuse in organizations has become a main concern.
General Electric Company (GE) is a diversified technology, media and financial services company. With products and services ranging from aircrafts engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and industrial products, it serves in more than 100 countries. This analysis will use financial ratios to see just how GE is performing as a Fortune 500 company.
Robbins, S.P., & Coulter, M. (2009). Management (10e ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Robbins, S. P., & Coulter. M. (2014). Management (12th ed.). Retrieved from: Colorado Technical University eBook Collection database.
PRIMIS MNO 6202: Managing Organizations. 2007. The 'Secondary' of the ' Reprint of the book. McGraw-Hill Education, 2013.
Robbins, S. P., & Coulter, M. (2009). Management (10th ed.). Upper Saddle River, NJ: Pearson
Organizational structure can be defined as the “formal arrangement of jobs within an organization” (Robbins & Coulter, 2009, p. 185). Having a defined and unified structure helps employees work more efficiently. Jacques Kemp, former CEO of ING Insurance Asia/Pacific, realized this need early on in his role. The company had been performing well and recently acquired another insurance company to become “one of the largest life insurance companies in Asia-Pacific” (Schotter, 2006, p. 4). However, Kemp’s proactive personality led him to seek out ways to achieve more efficient coordination between the regional office and business units (Robbins & Coulter, 2009). Kemp noticed that “most business unit managers did not even know the current corporate standards” and he began searching for a way to manage the managers (Schotter, 2006, p. 5). ING Insurance Asia/Pacific’s organizational structure was mechanistic and fairly well structured, but for a company that had recently been involved in a major acquisition and was divided across 12 geographically dispersed markets there was a great need to tweak this structure to unify the company (Schotter, 2006). If I had been in Kemp’s position as CEO, I would have made modifications to the organizational chain of command, formalized business processes, and used technology to stimulate collaboration amongst the region to help this company overcome organizational design challenges.
Jones, G. R., & George, J. M. (2011). Contemporary management. (7 ed.). New York, NY: McGraw-Hill.
The bottom layer would follow the guideline so they can achieve the company objectives. The group structure is Chairman Board of Directors Group of Executives Board of Management Group of General Management The main departments within the group are: Administration Division Business Division Customer Support Division Network Development Division Production Services Division R&D Department Finance Department Human Resources Each division has managers for supervision. The staff in each division needs to follow the managersÂ’ decision. Every member of staff clearly understands their role and responsibility under the hierarchical structure. It is because each layer gets different responsibilities.
Robbins, S, DeCenzo, D, Coulter, M and Woods, M 2014, Management: The Essentials, 2nd ed, Pearson, Frenchs Forest, NSW.
Robbins, S., Decenzo, D., & Coulter, M. (2013). Fundamentals of management. Upper Saddle River, NJ: Pearson Education, Inc.
Organizing is defined as the assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals (Bateman & Snell, 2004). The aspect I want to first discuss is how knowledge plays a big role in the organizing function of management in my organization. This is extremely important for organizing an organization because management has to obtain as much knowledge as possible. Here is a quote I will share that I have in my office from management “To know that we know what we know, and that we do not know what we do not know, that is true knowledge" (Thoreau, n.d.). They have to know about their plans for the future, their employees, competitor’s plans, changes in their market, and what to expect from the customer. They also have to try and plan for the unexpected things that happen to an organization. My organization starts the knowledge process by attending a convention called Association for the Advancement of Medical Instrumentation (AAMI). It is a meeting of medical device organizations and customers who are there to preview and review existing and new products. It gives my organization a chance to know what is out there presently and what is on the horizon for our competitors. Baxter Healthcare uses this convention as a steeping stone for planning in the future. They will involve a large amount of management to go around to the different booths of other companies and find out what their products are all about. That gives the organization an idea of what we are up against and what we have to plan ahead for. It is here were organizing comes into play with management for gaining all the knowledge possible to achieve maximum success. It is also a very important function for management to organize ...
“Organizing: is assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals” (Bateman & Snell, 2004, p. 17).
Organization is explained as a tool or the coordination of people and their action to achieve or fulfill their value. Organization joins resources and human being for making product or services with their input and output aspects, processes in their existing environment. Organization is survived because of the better economic performance, specialization of labor, environmental management, balance between power and control and so on.
Organizations are established in specific ways to obtain different objectives, and the structure of an organization can help or restrain its advance toward accomplishing these goals. Organizations of different sized and types can achieve higher sales and other profit adequately by identifying their requirements with the structure they use to operate.