Pattern of Management Developments at GE - Case Study Example

Management Does the pattern of management developments at GE over the last century seem to reflect the pattern suggested by management theory? Explain your answer. General Electric Company is one of the most adored organizations due to the superior management practices that have propelled the organization to greater heights. For centuries now, the organization has succeeded in its business operations that include building of energy appliances for domestic, office and industries. According to management theory, business in the 20th century has been influenced by numerous market forces that have required adoption of modern management practices, rather than the traditional management principles. GE Company, in its effort to remain relevant in the last century, has resorted to modest management practices as a strategy to remain competitive in the business market. This article seeks to examine the management developments that GE Company has applied in the last century. According to Cole (5), the traditional management practices have been phased out by modern management practices. In his theory of management, Cole (7) regards innovation as the core value in modern management strategies. To a large extent, GE has remained innovative in modeling its strategic goals and objectives in the last century. One indicator of innovation in this company is the adoption of employee empowerment stages, which is a dominant strategy in modern management. For instance, the organization has upheld employee training as a way of keeping to at par with changes in worker environment, and apart from planning, the organization has exercised expertise in the implementation of its innovations. Another attribute of modern management theory that can be identified in this organization is the use of research management as a tool for overcoming business threats and taking advantage of opportunities. Cole (76) points out that business in the last century has been phased by the forces of competition, and that the only way to survive in the dynamic market research strategies should be employed to identify market opportunities and to initiate differentiation strategies. GE has embarked on corporate research to identify possible areas of business development, which has helped it to remain unique in the energy provision sector. In this regard, it is possible to regard the management development patterns adopted by GE as relevant to the pattern proposed by the management theories. Which of GE’s management innovations seems to draw on a classical management perspective? Which seem to draw on a behavioral management perspective? How does the contingency perspective explain the management changes that GE has made over the years? Explain each of your responses. Classical and Behavioral strategies of management are different schools of thought that seek to optimize productivity in an organization. In classical management, managers seek to maximize output by optimizing the productivity characteristics of employees. GE has employed classical perspective in their innovation strategies by capitalizing on marketing strategies to enhance product flow to the customers. Marketing is a push strategy that aims at rolling out business products to the target customers and is crucial in optimizing organizational productivity. In addition, the organization has capitalized on worker experience to improve their productivity. In fact, the CEO of GE points out that employee in this organization relies on ‘past experience’ to improve their efficiency within the organization. As Griffin (13) explains, the use of classical perspectives is still superior in modern strategic management strategies. Behavioral perspectives are part of organizational management strategies that pay attention to employee empowerment as a way of aligning employee goals to the organizational goals and strategies. Griffin (14) regards behavioral management as a modern approach to organizational management that is relevant in the dynamic business environment. GE has remained innovative in employee empowerment strategies and in modeling employee behavior to match the expected standard. In employee empowerment, the organization sets a record of being the first to implement pension schemes with the objective of forming a long term relationship with its employees. In this manner, the organization has managed to satisfy its employees and hence reap from the employee focus that is reaped from satisfied workers. Why, in your opinion, has GE been so successful in integrating the management science approach with less quantitative approaches? The quantitative approach of management science is a method of business modeling that employs statistics and mathematical analysis techniques in engineering optimal organizational profits. Although GE has failed to implement quantitative approach, it has been honored with the INFORMS prize as one of the organizations that have successfully deployed scientific management techniques within its business operations. As the CEO of the organization states, the organization has capitalized on customer-based approaches to design its supply chain. For instance, the Company has deployed the Green strategy which is known for its effectiveness in providing environmental friendly products. By use of this strategy, the organization is able to attract customers that are sensitive to the environment, hence facilitating its product distribution in the market (Griffin 112). In principle, the management of GE feels that being customer sensitive is of more value to any organization that intends to survive in the modern business environment, and this has given an advantage over those organizations that have implemented quantitative approaches. In what ways does the change in GE’s approach to leadership reflect the same conditions as those that influence its current approach to management? GE Company has put Leadership development as a priority in its business development plans during the last century. For instance, 9 thousand employees in GE take up leadership training classes so as to gain leadership skills that are modest in the modern work environment. Training employees is one way of the ability of the organization to adopt changes that are demanded in the modern theory management, and reflects the organization's attitude to change. GE has maintained its attitude to remain flexible and relevant to the contemporary market structures that have been characterized by completely different business trends. Another way in which leadership training in GE reflects the same conditions that have influenced its approach to development is accommodation of new skills. Through employee training, the organization aims to build innovative skills among its employees (Cole 132). Therefore, its high regard for leadership development is part of its innovative approach to develop its management approaches. What information can you find about GE's Crotonville leadership campus? How are classes structured at Crotonville? Who can attend? What is GE trying to accomplish with Crotonville? What important information about Crotonville seems to be kept private by GE? Why? GE Crotonville leadership campus is part of the organization's relentless effort to shape management strategies in the global market. The classes at this institution are structured such that employees are free to choose certain leadership courses that are offered in the curriculum (The Training Para. 1-10). Executive level classes run for a period of three weeks to one month, and this short time allows many employees to access classes. This school has grown to accommodate the general public, but employees seem to have no option as the system forces them to acquire innovative skills from the campus. With Crotonville, the organization is building leadership skills not only for the organization, but also in the global scope. In its curriculum, it seeks to foster product understanding, customer-value approach and market understanding among leaders in the society. GE seems to hold back information on its project implementation strategy that has helped it to successfully deploy its development plans. The main reason why this organization holds this information is because this is information is core to its business success and has to remain its secret differentiation strategy. Works Cited Cole, Gerald. Management Theory and Practice. London: Cengage Learning. 2004. Print Griffin, Ricky. Fundamentals of Management. London: Cengage Learning. 2013. Print The Training. GE Homes Its Leaders at Crotonville. 2006. Web. 17 Oct. 2013. Read More

 

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