Scribd Logo
Upload

Welcome to Scribd!

  • 2K views

    GE Case Analysis

    Uploaded by

    ram_90000
    Welch took charge of GE in 1981 and faced the challenge of transforming the large, complex conglomerate. He initiated wide-ranging changes to GE's strategy, structure, and systems. This included streamlining operations, selling or closing unprofitable business units, delayering management, and reducing the workforce by over 100,000 employees. Welch shifted GE's culture to focus on growth, simplicity, and self-confidence. He developed new processes, roles, and relationships to leverage productivity and push growth through globalization. Welch transformed GE's management philosophy beyond just strategy and structure to prioritize purpose, processes, and developing people. He conceptualized the organization not just as an economic entity but also a social institution.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    GE Case Analysis

    Uploaded by

    ram_90000
    2K views9 pages
    Welch took charge of GE in 1981 and faced the challenge of transforming the large, complex conglomerate. He initiated wide-ranging changes to GE's strategy, structure, and systems. This included streamlining operations, selling or closing unprofitable business units, delayering management, and reducing the workforce by over 100,000 employees. Welch shifted GE's culture to focus on growth, simplicity, and self-confidence. He developed new processes, roles, and relationships to leverage productivity and push growth through globalization. Welch transformed GE's management philosophy beyond just strategy and structure to prioritize purpose, processes, and developing people. He conceptualized the organization not just as an economic entity but also a social institution.

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Welch took charge of GE in 1981 and faced the challenge of transforming the large, complex conglomerate. He initiated wide-ranging changes to GE's strategy, structure, and systems. This included streamlining operations, selling or closing unprofitable business units, delayering management, and reducing the workforce by over 100,000 employees. Welch shifted GE's culture to focus on growth, simplicity, and self-confidence. He developed new processes, roles, and relationships to leverage productivity and push growth through globalization. Welch transformed GE's management philosophy beyond just strategy and structure to prioritize purpose, processes, and developing people. He conceptualized the organization not just as an economic entity but also a social institution.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    2K views9 pages

    GE Case Analysis

    Uploaded by

    ram_90000
    Welch took charge of GE in 1981 and faced the challenge of transforming the large, complex conglomerate. He initiated wide-ranging changes to GE's strategy, structure, and systems. This included streamlining operations, selling or closing unprofitable business units, delayering management, and reducing the workforce by over 100,000 employees. Welch shifted GE's culture to focus on growth, simplicity, and self-confidence. He developed new processes, roles, and relationships to leverage productivity and push growth through globalization. Welch transformed GE's management philosophy beyond just strategy and structure to prioritize purpose, processes, and developing people. He conceptualized the organization not just as an economic entity but also a social institution.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 9

    GE Transformation Case

    Key Questions for Case Analysis


    What was Welch’s challenge in
    1981? How effectively did he take
    charge?
    How does such a large, complex
    conglomerate defy critics and
    continue to grow so profitably?
    How have Welch’s initiatives
    helped?
    How do you rate Welch’s change
    management initiatives? What are
    Layoff Impacts
    112,000 x $ 35,000 = $ 3.9
    billion per annum
    GE’s net profit in 1986 - $ 2.5
    billion
    Stages of change – Initial years
    Strategy Structure Systems
    # 1 or # 2: Fix, sell or Delayering Strategic
    close Corporate planning:
    staff detailed
    Organizationa documents
    l layers from to 5 page
    playbooks
    9-4
    3 circles: Downsizing Operating
    Services: Invest in Eliminate budgets:
    people & acquisitions 123,450 Past
    Technology: Invest in people @ comparisons
    R&D $50,000 to external
    standards
    Core: Reinvest in Impact $ 6
    productivity and billion on
    Stages of change – Initial years
    Workout People/ Value Added
    Leadership
    Developing new Changing Adding value at
    processes, roles & mindsets & multiple levels
    relationships management
    style
    -leverage productivity Commitment to -leveraging
    Crotonville productivity
    -model new roles-
    frontline initiative, Co-opt “Session -pushing
    C” HR Process
    management coaching growth
    CEO’s personal through
    -operationalise culture role model –
    - speed, simplicity, self globalisation
    50% on people
    confidence issues -building long-
    Weed out “Type term capability
    4”
    Doctrine to philosophy
    Strategy-the Purpose-the
    company as an company also as a
    economic entity social institution
    Structure-the Process-the
    organisation also as
    organisation as a set of roles and
    aggregation of tasks relationships
    and responsibilities People-recognizing
    Systems-managing people as
    personnel as organisational assets
    controllable costs and embodiers of
    and replaceable knowledge
    parts
    Corporate Transformation
    Restructuring tools change the
    organizational anatomy : defining the
    allocation of assets and distribution of
    responsibilities
    Reengineering exercises alter the
    organizational physiology: developing
    the organizational flows and
    interpersonal relationships
    But the key task is to transform the
    organisational psychology: influencing
    the behavioural context that frames
    individual thought and action
    Managing the transformation
    process
    Rationalization
    Discipline
    Support

    Revitalization
    Stretch
    Trust

    Renewal
    The endless circle
    Some Key Conclusions
    A new management philosophy: beyond
    strategy, structure and systems to
    purpose, process, and people
    A different concept of organisation:
    from ‘organisation man’ to
    ‘individualized corporation’
    A changing role for managers: beyond
    allocators, controllers, and
    implementers to leaders, developers,
    and entrepreneurs

    You might also like